- Gensler still believes that crypto assets are securities and should be regulated by the SEC.
- Gensler also reiterated that nearly all crypto assets meet the Howey test, a legal criterion that determines whether an asset or transaction can be considered a security.
- Gensler had previously claimed that everything other than Bitcoin is a security. However, he has not clarified whether Ethereum is a security or a commodity.
SEC Chairman Gary Gensler is set to testify before the U.S. Senate Banking, Housing, and Urban Affairs Committee today: What might he say about Bitcoin?
SEC Chairman to Testify Today
Despite losing in two court decisions, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has not backed down from his stance on crypto.
Gensler still believes that crypto assets are securities and should be regulated by the SEC. He has attributed the recent crises in the crypto industry to the ‘broad non-compliance with securities laws’ by the sector.
The SEC chairman likens this situation to the events during the economic crisis in the 1920s before the securities laws were enacted. Gensler is likely to reiterate this view during the upcoming hearing today before the Senate Banking, Housing, and Urban Affairs Committee.
Gensler also reiterated that nearly all crypto assets meet the Howey test, a legal criterion that determines whether an asset or transaction can be considered a security. Gensler stated:
“Given that most crypto tokens meet the definition of securities under U.S. law, it’s clear that most crypto exchanges should fall within the SEC’s regulatory framework.”
Over the past few months, the SEC has lost in court against both Ripple and Grayscale. In both cases, the SEC alleged violations of federal securities laws, but the court rulings were different.
Gensler will also discuss the SEC’s recent two proposals. The first is related to the custody of crypto assets, and the second aims to redefine the term ‘exchange’ to formally include crypto platforms.
Bitcoin, Ethereum – What Does Gensler Think About Them?
The crypto industry will closely watch the Senate Committee hearing due to the seriousness of the topics under discussion. In particular, they want to know if there have been any changes in Gensler’s views on crypto. However, it appears that Gensler’s stance on crypto has only hardened further.
Gensler had previously claimed that everything other than Bitcoin is a security. However, he has not clarified whether Ethereum is a security or a commodity. These two questions lie at the heart of the dispute between the SEC and the Commodity Futures Trading Commission (CFTC).
Critics of the regime have criticized the SEC’s regulatory approach through enforcement amidst the uncertainty surrounding crypto laws in the U.S.
