In an upcoming testimony, Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), is set to underscore the ongoing argument that the majority of cryptos should be considered securities.
“There is nothing about the crypto asset securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws,” the document stated.
Gensler’s Push For Cryptos As Securities
The document states that Gary Gensler, a vocal crypto critic, will reiterate his stance that crypto should be subject to securities regulations.
“Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well.”
Titled “Testimony by Gary Gensler,” the document provides a preview of Gensler’s forthcoming presentation today before the US Senate Committee on Banking, Housing, and Urban Affairs.
It highlights the argument that as financial products continually evolve, there is a need to constantly update regulations. Gensler is also set to reiterate his argument that “the vast majority” of crypto tokens meet the investment contract test.
However, it notes that Gensler will not be commenting on any of the SEC’s ongoing litigations. The SEC’s current legal battles include lawsuits against two major crypto exchanges, Coinbase and Binance.
SEC Action In Recent Times
The SEC initiated legal action against the two exchanges on June 5th and 7th, respectively. While Binance is contending with a series of allegations, both exchanges share the common accusation of offering unregistered crypto services.
The recent ruling in the SEC’s lawsuit against Ripple determined that XRP is not a security for retail purposes.
The SEC secured a partial victory when the court ruled that XRP is classified as a security for institutional sales. However, the SEC has firmly declared its intention to appeal the unfavorable side.
The SEC has argued that this ruling could potentially impact other ongoing SEC litigations of a similar nature. These include Coinbase and Binance, as it could serve as evidence against them.
The judge approved the motion to appeal. The court will likely hear the case in the second quarter of 2024.
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