Skip to main content

SEC Chairman Explains Why He Views All Crypto Tokens Other Than Bitcoin as Securities

SEC Chairman Explains Why He Views All Crypto Tokens Other Than Bitcoin as Securities

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has detailed why he considers all crypto tokens other than bitcoin as securities. While acknowledging that crypto tokens may have different setups, he stressed that “at the core, these tokens are securities.”

SEC Chair Believes All Crypto Tokens Other Than Bitcoin Are Securities

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, explained why he believes all crypto tokens other than bitcoin are securities in an interview published Thursday by New York Magazine’s Intelligencer.

Gensler believes that the securities watchdog has all of the legal tools needed to oversee the crypto sector, the publication conveyed, adding that the SEC boss explained that pretty much every sort of crypto transaction already falls under the SEC’s jurisdiction except spot transactions in bitcoin itself and the actual purchase or sale of goods or services with cryptocurrencies.

The SEC chairman was quoted as saying:

Everything other than bitcoin … you can find a website, you can find a group of entrepreneurs, they might set up their legal entities in a tax haven offshore, they might have a foundation, they might lawyer it up to try to arbitrage and make it hard jurisdictionally or so forth.

“They might drop their tokens overseas at first and contend or pretend that it’s going to take six months before they come back to the U.S.,” Gensler continued, without naming specific cryptocurrencies. He emphasized:

But at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.

Following Gensler’s claim that all crypto tokens other than BTC are securities, a number of people took to social media to disagree with the SEC chief. Lawyer Jake Chervinsky tweeted:

Chair Gensler may have prejudged that every digital asset aside from bitcoin is a security, but his opinion is not the law.

“The SEC lacks authority to regulate any of them until and unless it proves its case in court,” Chervinsky emphasized, adding that this must be done “For each asset, every single one, individually, one at a time.” Logan Bolinger, another lawyer, similarly said on Twitter: “In this country, judges — not SEC chairs — ultimately determine what the law means and how it applies. Doesn’t mean his thoughts are irrelevant. They’re just not dispositive.”

What do you think about SEC Chairman Gary Gensler viewing all crypto tokens other than bitcoin as securities? Let us know in the comments section below.



from Bitcoin News https://ift.tt/g47nIOa
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Snap 10-Day Streak: $93M Flees as Fidelity’s FBTC Takes the Hit

Data compiled Friday revealed a striking reversal for spot bitcoin exchange-traded funds, which snapped a ten-session inflow streak with a $93.16 million exodus—marking their first day of negative movement. Bitcoin ETFs Drain While Ether ETFs Gain The abrupt shift punctuated a previously unbroken stretch of positive momentum for U.S. bitcoin ETFs, culminating in a $93.16 […] from Bitcoin News https://ift.tt/Q1xgKWA
Post a Comment
Read more

Richard Teng Takes Charge as Binance CEO Following Changpeng Zhao’s Exit

After Changpeng Zhao’s exit, Richard Teng has stepped in as the new chief executive officer of Binance, the globe’s largest crypto exchange in terms of trading volume. On Tuesday, Teng made his introduction to the public through social media platform X, assuring that under his stewardship, Binance will “continue to meet and exceed the expectations of stakeholders.” Richard Teng Assumes Binance’s Top Role, Succeeding CZ This week marked a significant event for crypto enthusiasts as they observed one of the largest settlements in the industry’s history. The settlement involved Binance and the U.S. Department of Justice, with Binance incurring fines totaling approximately $4.3 billion. Following this development, the exchange’s CEO, Changpeng Zhao — popularly known as “CZ” — resigned. Post-settlement, on Tuesday, CZ announced via Twitter that Binance’s ex-Global Head of Regional Markets, Richard Teng, has been appointed as the new CEO. Teng brings an extensive history in the financ...
Post a Comment
Read more

Glassnode and Ark Invest Introduce ‘Cointime Economics’ — A New Model to Measure Bitcoin’s Value

Researchers from Glassnode and Ark Invest have collaborated to develop a new economic model for analyzing Bitcoin’s onchain metrics called “Cointime Economics.” The framework offers an alternative way to measure the economic activity and value of bitcoin based on “coinblocks” rather than the standard accounting method of unspent transaction outputs, or UTXOs. Cointime Economics: A Unique Framework for Analyzing Bitcoin The Cointime Economics white paper explains that coinblocks are the product of the number of bitcoin, or BTC , multiplied by the number of blocks they are held without moving. For instance, ten bitcoins held for ten blocks would equal 100 coinblocks. This method aims to capture the real economic weight and importance of each bitcoin based on the time it remains dormant. The longer a bitcoin is unmoved, the higher its cointime and implied economic significance. Cointime Economics introduces metrics such as coinblocks created, destroyed, and stored to describe Bitcoi...
Post a Comment
Read more