SEC Puts Pressure on Cryptocurrency Market, But Leaves Bitcoin Out of Consideration

SEC Puts Pressure on Cryptocurrency Market, But Leaves Bitcoin Out of Consideration

Gary Gensler, chairman of the SEC, attended the SEC Speaks conference on Thursday and spoke to other media outlets. As a culmination, he challenged any industry demanding more clarity, stating that “not liking the message is not the same as not receiving it”.

Going further, it reclassified Bitcoin as an asset different from other cryptocurrencies. After all, this would be a commodity (a commodity), while most of the others are securities.

For example, Gensler expressed concern about the financial integrity of investors and stated that they must have a minimum of information to be able to invest safely.

Bitcoin must come into the hands of the CFTC

According to The Wall Street Journal, Gary Gensler was inclined to leave Bitcoin to the Commodity Futures Trading Commission (CFTC), the agency where he worked between 2009 and 2014. After all, BTC fits as a commodity. different, but digital.

However, it has put more pressure on exchanges and other companies linked to cryptocurrencies. Speaking to CoinDesk ahead of the SEC conference, Gensler refuted criticism he has received over the lack of regulatory clarity.

“Not liking the message is not the same as not receiving it.”

Either way, your speech remains the same. For the SEC chairman, the resources used are not important but what these assets really are, citing the Howey test as a tool to evaluate them.

“We will make sure we don’t inadvertently undermine securities laws.”

“We have a $100 trillion capital market. Cryptocurrencies cost less than $1 trillion worldwide.”SEC chairman Gary Gensler continued during the conference. “But we don’t want this to detract from what we’re doing elsewhere.”

The witch hunt has begun

In 2017, many projects conducted so-called Initial Coin Offerings (ICOs). Although almost all of them went unnoticed by US regulators at the time, such projects seem to be under investigation after 5 years.

One example is Dragonchain, also known as the Disney Blockchain, which was sued by the SEC last month. According to the note, the developers were not allowed to make such an offer, after all, such a token was considered a security.

It is therefore possible that more such cases will arise in the coming years, with the SEC reviewing several projects. Either way, Bitcoin is expected to come under the eyes of the CFTC, which could accelerate the release of the highly anticipated spot BTC ETF, which could boost its price.

Source: Live Coins

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