The crypto industry’s unparalleled boom last year has attracted the attention of regulators around the world, all of which show varying degrees of acceptance for the emerging asset class. . For example, the Chief of Staff of the US Securities and Exchange Commission has repeatedly expressed his skepticism about the lack of investor protection and information provided by blockchain projects that issue tokens. electronic money newspaper.
Tough method
After a year of firming his stance on the crypto industry, SEC boss Gary Gensler has now issued a new disclaimer for crypto projects about the need must register with the regulator. While praising indsutry’s innovative and entrepreneurial twists, the top watchdog criticized many of these projects for misleading investors in recent times. Interview with CNBC. He argued,
“I will call them crypto tokens, which are raising money from the public. And are they sharing with the public the same set of disclosures that help the public decide and are following the truth in advertising? ”
He added,
“Whether its crypto tokens, whether it’s SPAC, this is something new. What’s old and really important is this basic idea that if you’re raising money from the public and the public is thinking profitably, you have to give them basic disclosures. ”
Gensler’s main focus in his short-term is to bring cryptocurrencies into compliance with applicable securities laws, as he believes most tokens sold can be classified under this category. He also asserted the same in the interview,
“Unfortunately, there are too many [projects] trying to say ‘well, we’re not security, we’re just something else.’ I think the facts and circumstances suggest that they are investment contracts, they are securities, and they should register. ”
Weaknesses for ETH?
However, when it comes to the status of Ether, the second-largest token by market capitalization, the head declined to comment on “any matter,” stating that the SEC is not “involved in any public forums that talk about any project. ”
Notably, before becoming the top boss of the SEC, Gensler told an MIT class he was teaching that ETH could be considered a security when tested. Many crypto enthusiasts have made that point pointing to bias by the SEC in the months since it sued XRP issuer Ripple Labs for selling unregistered securities.
Regardless of his previous views on the industry, Gensler has cemented his insistence on being the primary regulator for virtual assets. In a previous interview with the Wall Street Journal, he emphasized that the cryptocurrency is in line with “widespread remittances at the SEC.”
The agency also recently hired a senior advisor specializing in cryptocurrencies to provide assistance in “policy making and interdisciplinary work related to crypto-asset supervision.”