- Gensler refused to comment on whether Ethereum is a kind of security.
- SEC has ruled that XRP is a security in a case against Ripple Labs.
Gary Gensler, the chairman of the United States Securities and Exchange Commission (SEC), has discussed how securities rules apply to cryptocurrency tokens as part of his presentation on the commission’s goals for regulating the cryptocurrency industry. On Monday, SEC Chair Gary Gensler discussed crypto regulation and the company’s regulatory strategy for the year 2022.
Generally speaking, the chairman explained:
“If you are raising money from the public, and the public is in anticipation of profit based upon that promoter, sponsor, that group’s efforts — that’s within the securities laws, and it’s within the securities laws because Congress painted with a broad brush.”
SPACs Are “Exciting”
Gensler emphasized that assets that refer to themselves as tokens are still most likely and maybe securities, according to him. Even though he acknowledged that new investment opportunities, such as cryptocurrency tokens and Special Purpose Acquisition Companies (SPACs), are “exciting.”
Gensler further explained:
“What is kind of old and really important is this basic idea that if you raise money from the public and the public is thinking about a profit, you have got to give them basic disclosures and everything.”
He was also questioned if Ethereum is a security, given that the Securities and Exchange Commission (SEC) has ruled that XRP is a security in a case against Ripple Labs and its executives. On the other hand, Gensler refused to comment on whether ether is a kind of security. He reiterates that he would not provide an answer regarding any specific cryptocurrency.
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