The chairman of the United States Securities and Exchange Commission, Gary Gensler, appears unfazed by a string of recent legal setbacks. However, he is still determined that his SEC has to be the one to reign over crypto and intends to tell lawmakers the same on September 12.
The securities regulators have lost against Grayscale and Ripple, which is huge for the company. In his prepared testimony for the Senate Banking Committee, Gensler makes it seem insistent that cryptocurrencies must comply with the same laws as other securities, such as stocks.
Gensler said in the testimony, “Given this industry’s wide-ranging noncompliance with the securities laws, it’s not surprising that we’ve seen many problems in these markets. We’ve seen this story before. It’s reminiscent of what we had in the 1920s before the federal securities laws were put in place.”
Additionally, he claimed that almost all assets pass the Howey test, which is a legal standard used to determine whether or not a transaction qualifies as a security.
“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,” said Gensler.
Also Read: Grayscale Sent SEC A Letter For Spot Bitcoin ETF Proceeding
