- SEC Chairman Gary Gensler discusses his belief that digital asset markets should be regulated like other capital markets in a new article for The Wall Street Journal.
- Referring to BlockFi and other crypto lenders that have collapsed in the recent market crash, Gensler said investors need protection when entering the market.
- Several key members of the cryptocurrency community have challenged Gensler on the matter.
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Several prominent crypto personalities have asked Gensler to approve a spot in the Bitcoin ETF in response to this article.
Gensler Says Crypto Needs Securities Law
Gary Gensler’s latest comments on the digital asset market are dropping like a lead balloon in the crypto community.
SEC Chairman I posted an article Entitled “SEC Treats Crypto Like Any Other Capital Market” wall street journal On Monday, he spoke about how he believes cryptocurrencies need to be regulated to protect investors. In that article, Gensler said, “There is no reason to treat crypto markets any differently than other capital markets” simply because they use new technology, noting that securities laws, like traditional financial instruments, should be treated differently. He reiterated his assertion that the law should apply to digital assets.
Gensler noticed block phi Other crypto lending platforms that faced bankruptcy in June’s market meltdown have said they will have to comply with regulations regardless of how they market their services. Currency exchanges, referring to DeFi applications, said, “Through decades of litigation, the Supreme Court has made it clear that the economic reality of a product, not the label, determines whether it is a security. He added that all lenders that offer securities are under the jurisdiction of the SEC, warning that the agency acts as a “cop on the ground” for companies that fail to protect consumers.
Community Slate WSJ Piece
While some praised Gensler’s comments, multiple members of the cryptocurrency community attacked him on Twitter over the paywall part. “You can’t have local regulations on a global financial system that you can access without permission… He thinks you’re too stupid to understand this.” Said Lee Drogen, Chief Investment Officer, Starkiller Capital. “This senior U.S. government official openly admits that he basically thinks the entire global economy should already comply with U.S. regulations, as if the U.S. really is the legal capital of the world. Instead, ironically cheated his paywall his link.” Added DefiDi ◎ gene.
CoinShares Chief Strategy Officer Meltem Demirors Weighted“Instead of writing opinion, agencies might be able to (a) engage with the market participants they are supposed to oversee and (b) try to create practical and workable rules and enforce them equally. Dizer Capital founder Yassin Mobarak was particularly poignant. Blame A corrupt ex-banker. “There is no reason why we should not disclose our relationships with Vanguard, JP Morgan and Goldman Sachs,” he wrote. “You must resign. The stench of corruption chokes you.” (Gensler, who once worked for Wall Street giant Goldman Sachs, said estimated net worth He was hit with up to $119 million in damages in February 2021 and has never been convicted of corruption.)
Several others, including prominent crypto personalities Cobie and Loopify, took the opportunity to press Gensler over the SEC’s decision to stop approving spot Bitcoin ETFs. “ofGood, find an ETF? ” Said Coby.
Since taking over the SEC in 2021, Gensler has frequently drawn the ire of the cryptocurrency community. Much of the complaint stems from the SEC’s refusal to approve a spot Bitcoin ETF and Gensler’s repeated comments about how digital assets should be regulated. He clarified that he believes many crypto tokens qualify as securities, but the SEC has yet to publish clear guidelines on the matter.
Gensler repeated In June, he thought Bitcoin was a commodity, but was more murky about his views. ethereum and other assets. If Bitcoin is actually a commodity, it is not subject to the SEC’s mandate. However, thousands of other crypto tokens on the market could be included in the SEC’s crosshairs if they are considered securities.
Disclosure: At the time of writing, the author of this work owned ETH and several other cryptocurrencies.