Gary Gensler claims the problem is not regulatory clarity but non-compliance with current laws.
SEC Chair Gary Gensler once again targets the crypto industry, asserting that several crypto platforms violate securities laws.
On April 27th, Gensler shared a brief video on Twitter in which he referred to crypto assets as "investment contracts" and urged platforms dealing with such products to register with the SEC to safeguard American investors.
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SEC Chair defined an investment contract as an instance when "you invest money in a common enterprise with a reasonable expectation of profits, to be derived from the efforts of others."
Gensler argued that the crypto market suffers not from a lack of regulatory clarity but from non-compliance with existing regulations. He emphasized:
The law is clear, if you're a securities exchange, clearinghouse, broker, or dealer, you must come into compliance, register with us.
The SEC has been leading the crypto crackdown in the US, with Gary Gensler persistently asserting that almost all crypto assets, except for Bitcoin (BTC), are classified as securities. The man believes that many crypto firms and platforms violate securities laws if they fail to register with the SEC.
It can be assumed that the video from Gary Gensler comes after multiple old videos from SEC's Chair surfaced online, where he commented on cryptocurrencies or even called crypto protocol Algorand a "great technology."
Several commenters on Gensler's latest video pointed out his change in stance on the crypto market. Before his role as SEC Chair, Gensler seemed to view crypto differently, even categorizing digital assets as "non-securities" and comparing them to cash and commodities.
Gary Gensler's recent remarks on crypto platforms highlight the ongoing debate surrounding the regulation of digital assets and the challenges faced by the industry in navigating the regulatory landscape in the United States.
