Gary Gensler Wants SEC Staff To Adjust Crypto Compliance, Says Most Are “Securities”
The United States Securities and Exchange Commission (SEC) chairman, Gary Gensler, disclosed he had requested the commission staff to do more on crypto compliance.
Gensler Asks Staff to Ensure Crypto Compliance
The US SEC chair touched on the need for crypto regulations and compliance. Gensler made the statement during the Practicing Law Institute’s conference with the SEC last Thursday.
According to Gensler, the core mandate of the commission’s guidelines applies to all securities markets.
The SEC chair made a strong statement about what constitutes securities in the crypto industry. He says, “Of the roughly 10,000 assets, he believes that most of them are securities. “And the offers and sales of these tokens fall under the securities law.”
However, Gensler noted that not all crypto assets are qualified to be called securities. Still, these represent just a fraction of the assets, which may be significant if aggregated at crypto market value.
The SEC boss cited the case of Bitcoin, which he previously labeled a commodity. As a commodity, Bitcoin falls under the Commodities Futures Trading Commission’s (CFTC) jurisdiction.
Moreover, as the first crypto coin, Bitcoin is often called “digital gold.” It is traded as a precious product with a store of value.
Gensler said people have been clamoring for comprehensive “guidance” for the crypto industry. The SEC chair disclosed that the commission has spoken in a clear and simple tone over the past few years.
The SEC has been at the forefront of ensuring that virtual asset service providers stick to the rules. He revealed that investor protection is at the core of the commission’s enforcement mandate.
As a result, Gensler disclosed that he had asked the agency staff to collaborate with token issuers. This is to ensure their assets are registered and regulated as securities.
SEC Unveiled New Offices to Manage Crypto Issuer Filings
According to reports, the regulatory body has added new offices to oversee the crypto issuer filings unit. The two new offices are added to complement the existing seven, which handle issuer filings for the crypto industry.
However, one of the new offices will serve as the commission’s solution to the increasing number of crypto issuer filings in America.
The new offices are the Office of Crypto Assets and the Office of Industrial Applications and Services.
As per the SEC, the Office of Crypto Assets will be responsible for reviewing crypto issuer filings for all digital currencies. Meanwhile, the Office of Industrial Applications and Services will handle non-pharmaceutical, non-medical, and non-biotech products.
The growth of cryptocurrencies is why the SEC wants a specialized approach to its management.
Like other regulatory bodies, the SEC has been more aggressive in enforcing compliance from crypto exchanges.
Admittedly, the commission has shown its readiness to go the extra mile in ensuring compliance with its statutes. Gensler is in the driving seat of the move, and it is not ending any time soon.
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