💰🚨 The Chairman of the U.S. Securities and Exchange Commission, Gary Gensler, recently testified at the House Appropriations Subcommittee on Financial Services and General Government, where he stated that rules for the cryptocurrency market already exist, but the industry is still “rife with noncompliance.” Gensler has repeatedly emphasized that the vast majority of coins and tokens in the crypto space are securities and that most digital assets, aside from the biggest and oldest cryptocurrency Bitcoin, fall under the securities definition.
Congressman Sanford Bishop (D-GA) asked the SEC chairman if the agency has any plans to issue a rule to clarify how securities laws apply to digital assets. Gensler reiterated his stance that the rules for crypto are already clear and that disclosure regulations exist when somebody tries to raise money from the public.
However, the crypto industry has long called for regulatory clarity, and Gensler’s comments have renewed concerns about the regulatory landscape for digital assets. The SEC has continued to pursue a “regulation by enforcement” approach when it comes to crypto, cracking down on companies and projects that push what the regulator deems as unregistered securities.
To avoid the SEC’s enforcement actions, crypto companies must prioritize compliance and ensure they are operating within the existing securities regulations. As the industry continues to evolve, it will be important for regulators and industry participants to work together to develop a clear regulatory framework that supports innovation while also protecting consumers.