SEC Chairman Declares Most Cryptocurrency Transactions as Securities
According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all type…
According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all types of cryptocurrency transactions except Bitcoin belong to securities transactions under the jurisdiction of the SEC. These tokens are securities, because there is an intermediary group, and the public expectation is based on the group’s profits. Behind these cryptocurrencies, some people use various complex and legally opaque mechanisms, But at the most basic level, they are trying to promote their Token and attract investors. Because of its unique history and creation story, Bitcoin is fundamentally different from other encryption projects in this respect.
US SEC Chairman: “All cryptocurrencies except Bitcoin” are securities
Interpretation of the news:
In an interview with the New York Times, Gary Gensler, the chairman of SEC, has stated that most types of cryptocurrency transactions are considered as securities transactions under the jurisdiction of the SEC, except for the leading cryptocurrency Bitcoin. According to him, tokens are securities because they have an intermediary group, and the public expects to gain profits from this group. Despite the complex and opaque mechanisms some people use behind these cryptocurrencies, the underlying motive of these tokens is to promote their token and attract investors.
In light of this new regulation, it is a significant milestone for the cryptocurrency market. Many commentators see the Chairman’s statement as a vital step in increasing the legality, legitimacy, and long-term stability of cryptocurrency investments. It adds much-needed clarity to the world of cryptocurrencies, highlighting the need for further regulation to address the trust issues that come with investment in the asset class.
The Chairman has acknowledged that Bitcoin is fundamentally different from other cryptocurrencies due to its unique history and creation story. While cryptocurrencies such as Bitcoin do not possess a profit-earning intermediary, Gensler has still raised concerns about Bitcoin and its potential impact on national security. Despite that, this statement shows the growing importance of Bitcoin in the world economy as its regulation now differs from other crypto assets.
Overall, Gensler’s remarks may have far-reaching implications within the cryptocurrency market. As investors will treat most cryptocurrencies the same way as shares or bonds, it will open up investors to new legal protections and provide incentives for projects to comply with regulatory demands. It adds to the ongoing debates surrounding the classification of cryptocurrency under the US law, but the Chairman’s statement likely exacerbates tensions between cryptocurrency advocates and regulators seeking to identify potential security risks.
In conclusion, Gary Gensler’s announcement is a significant development for the cryptocurrency market. It offers essential insights into how the SEC views the inner workings of the cryptocurrency industry and indicates the direction forward for cryptocurrency regulations. The SEC’s increased scrutiny on this market will hopefully build investor confidence, prove legitimacy in the sector, and attract new investment opportunities, while mitigating the potential risks to consumers.
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