SEC Commissioner Gary Gensler has stuck to his belief that many digital currencies are subject to existing securities regulations, despite strong opposition from the crypto community.
Gensler echoed this view, stressing that cryptocurrency companies are subject to the same principles as traditional financial institutions, Wednesday 2023.
His comments come as the cryptocurrency world is awash with events such as the Benzinga Futures of Digital Assets conference on November 14 and the ongoing debate over the SEC's acceptance of Bitcoin spot ETFs.
"There is nothing to suggest that investors and issuers in cryptocurrency securities markets should be protected by our securities laws," Gensler said.
Citing historical decisions, he continued. "Congress could have said in 1933 or 1934 that the securities laws only applied to stocks and bonds," The Block reported.
"However, Congress included a long list of provisions in the definition of securities, including ``investment agreement,''" he said.
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Gensler, who highlighted the industry's challenges, said this was not surprising given its vulnerability to "fraud, fraud, bankruptcy and money laundering".
He added: "Many companies in this space are rushing to seek legal protection in bankruptcy courts and pursuing private lawsuits, even though they argue that their practices do not fall under the law under Satoshi Nakamoto's famous white paper."
Without going into details, Gensler cited SEC actions against various individuals and entities, citing former McDonald's CEO MCD as an example.
"And don't get me started on cryptocurrency," he joked, referring to several people charged by the SEC in this "extremely irrelevant industry," according to The Block.
Read more. Bitcoin ETF Could See 74% Price Growth Through 2024, Galaxy Researchers Say
Attend the Benzinga FinTech Convention and Awards on November 13 and The Future of Digital Assets in New York on November 14 to stay informed about trends in the crypto space such as artificial intelligence, regulation, SEC actions and institutional adoption. Buy prepaid tickets now .
Photo by Shutterstock and Third Way Thinking via flickr