Gary Gensler Spoke About Crypto! The statement related to today’s House Financial Services hearing of SEC Chairman Gary Gensler spoke about crypto, has been published:

In crypto asset securities markets, there is no evidence that investors and issuers have less right to the protection of our securities laws. Congress could have said that the securities laws of 1933 or 1934 only applied to stocks and bonds.

However, Congress added a long list of more than 30 items to the definition of security, including the term “investment contract”. As I’ve said before, without any prejudice to any token, most crypto tokens probably meet the investment contract test. Given that most crypto tokens are subject to securities laws, it appears that most crypto intermediaries should also comply with securities laws.

27 See. Securities and Exchange Commission, SEC, Suggesting Advanced Protection Rule for Registered Investment Advisors. 28 See. The Securities and Exchange Commission SEC, Proposes New Requirements to Address Risks Arising from Conflicts of Interest Associated with the Use of Predictive Data Analytics by Brokers-Dealers and Investment Advisors.

These laws have been in the books for decades. Sections 5, 15(a) and 17A(b) of the Securities Exchange Act of 1934 require intermediaries and clearing agents acting as a securities exchange, broker and dealer to be subject to the securities laws and to register or meet the requirements for a securities exchange.

You might like: SEC Postpones Spot ETF Applications of These Companies!

Our Goal is to Protect Investors!

Considering the widespread non-compliance of this sector with securities laws, it is not surprising that we see many problems in these markets. We have seen this story before. This reminds us of what we experienced before the federal securities laws came into effect in the 1920s. Therefore, we have initiated a series of enforcement cases, some of which have been settled and some are in litigation, to hold those who are wrong accountable and to encourage investor protection.

The SEC also addressed crypto security markets by rule-making. We’ve issued a reopening bulletin reiterating the applicability of existing rules to platforms trading crypto asset securities, including “DeFi” systems. This version also provides additional information for systems to be includes in the new propose change definition.

Although our existing investment advisor custody rule already applies to crypto funds and securities, our proposal that updates it will cover all crypto assets and enhance the protections provided by qualified custodians. These are just two examples of the rules we suggest that touch crypto markets. I will be happy to discuss SEC’s work, but I will not comment on any active and ongoing lawsuit.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates.