Gary Gensler, the head of the Securities and Exchange Commission (SEC) was expected in the Senate for a hearing scheduled for this Wednesday, September 27. A meeting during which the manager defended the regulatory position of the organization he leads. The latter has not changed one iota.
Gary Gensler, faithful to the crypto regulations deployed so far
As we told you a few days ago, the crypto industry is not out of the woods regarding regulation. And it is not the urgent calls from American parliamentarians on the Bitcoin Spot ETF that will change anything.
Whilehe spoke today in the Senate regarding the much criticized regulation of cryptos, the president of the SEC reaffirmed what he has always defended. Namely, there is no question that companies active in this sector benefit from preferential treatment.
They must all be governed by U.S. securities law. A standard which, according to him, does not respect activities around cryptos. This is because, according to him, the spirit of this legislation takes into account the notion of “investment contract”. Legal category into which crypto operations would fit.
No question therefore, suggests Gary Gensler’s opinion, that specific regulations be implemented for the crypto industry as it has been demanding for months. And to support his reasoning with legal arguments, the manager cites sections 5, 15 (a) and 17A (b) of the Securities Exchange Act of 1934.
These provisions, argues Gary Gensler, would constitute the legal basis requiring crypto exchanges, brokers and traders to register with the SEC. Unless these intermediaries benefit from an exceptional regime, which is currently not the case.
Gary Gensler praises a regulation that is nevertheless misguided
The highlight of Gary’s Senate hearing was when he explained the SEC’s proactive stance regarding crypto regulation. This, in a context where the institution is concerned about a general refusal of crypto firms to comply with the requirements of the SEC.
The manager is full of the measures taken by the institution to make himself obeyed. This while evoking the desire of the SEC not to stop there. In addition to crypto exchange platforms, decentralized financial systems (DeFi) should also be subject to strict rules.
Separately, the SEC chairman revealed a plan to update investment advisor retention rules. An update which, once implemented, should not only expand to cryptos, but also strengthen investor protection through qualified depositories.
In a word, the SEC will continue to make life difficult for crypto firms, in accordance with what it announced at the start of the year. This is to the great dismay of players in the crypto industry, who, in recent months, have stepped up to the plate. This is to denounce the misguided nature of the regulatory policy desired and promoted by the SEC and its boss.
Receive a summary of the news in the world of cryptocurrencies by subscribing to our new service daily and weekly so you don’t miss anything of the Tremplin.io essentials!
