Cryptocurrency Recognized As Securities
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said in a speech on Thursday that the vast majority of cryptocurrencies on the market are securities. Thus, they must fall under the relevant laws.
“Investor protection is just as relevant, regardless of the technologies used,” he stressed.
Later in his talk, Gansler set his sights on centralized and decentralized platforms. Trading platforms must comply with regulations to protect users, he said, as platforms facilitate transactions in cryptocurrencies that fall under the definition of securities. The last aspect equates them to broker-dealers, which raises the question of their registration with the Commission.
When asked what the SEC would do if trading platforms refused to voluntarily register with the Commission, Gensler only quoted Kennedy:
“No honest business should be afraid of the SEC.”
The SEC is still sorting out the crypto lending space, but Gansler believes lending platforms should register with the Commission.
Another issue that the SEC decides is stablecoins. And here the Commission intends to do everything possible to protect investors. According to Gensler, stablecoins can be securities depending on how their peg is maintained, whether they pay interest, and how they are sold.
Concluding his speech, Gansler emphasized that the SEC intends to play the role of “energetic policeman” who controls the crypto sector.