The SEC chairman previously indicated that all cryptocurrencies except BTC are securities.
In a recently unearthed video from a 2018 crypto event hosted by Bloomberg and Fidelity, Gary Gensler, the current chairman of the United States Securities and Exchange Commission (SEC), made statements that contradict his current position on asset regulations. digital in the country. .
The video, which began circulating on Twitter on June 12, shows Gensler addressing institutional investors at the Massachusetts Institute of Technology, where he worked as a professor before joining the SEC in 2021 after being nominated by President Joe Biden. , stating that four major cryptocurrencies, Bitcoin (BTC), Ethereum (Ether), Litecoin (LTC) and Bitcoin Cash (BCH) are not securities.
At the time, the SEC chairman highlighted that these four digital assets represented approximately 75% of the market, emphasizing their exclusion from the category of securities.
“More than 70% of the crypto market is Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Why did I name those four? They are not security. Three-quarters of this (digital asset) market is non-securities,” the SEC chairman said in the video.
President Gensler in 2018 at a Bloomberg conference in New York:
“Bitcoins. Ether. Litecoin. Bitcoin cash. Why did I name those four? They are not values.
What is Gary Goldman going to say about this one? Deep fake? pic.twitter.com/p7DJlYkJIt
—Ryan Selkis 🪳 (@twobitidiot) June 12, 2023
Gensler’s 2018 comments come from a personal view
Gensler’s comments in the video have sparked controversy, as the comments contradict his recent suggestions that most cryptocurrencies other than BTC can be considered securities.
Although legal experts such as crypto lawyer Preston Byrne have cleared up While Gensler’s 2018 comments were made in a personal capacity, the comments have raised concerns within the crypto industry.
Critics argue that his lack of clear guidance on the legality of specific tokens before initiating a “regulation by compliance strategy” with no clear path to compliance has created uncertainty and frustration among the crypto community.
Last week, the market regulator labeled 19 more crypto assets as securities, including Solana (SOL), Polygon (MATIC), Flow (FLOW) and Near (NEAR), bringing the total to 68 digital currencies that the Commission has identified. as security. under the leadership of Gensler. However, none of the crypto assets mentioned in the 2018 video have made it to SEC listing yet.
Is Ethereum a security or not?
The SEC chairman previously indicated that all cryptocurrencies except BTC are securities. In that regard, the Commission has sued many crypto companies, including Coinbase, Ripple Labs, Binance, Gemini, and Genesis, for violating federal securities laws by selling unregistered securities in the United States.
In April, Patrick McHenry, Chairman of the US House Committee on Financial Services, requested that Gensler provide a clear answer on whether Ethereum is a security. Still, the SEC chairman did not answer the question definitively.
That same month, another video Gensler’s 2019 arose before his stint with the SEC. In the video, he praised the Algorand smart contract platform for its underlying technology before declaring the security of its native ALGO token in a lawsuit against cryptocurrency exchange Bittrex.
In early March, the SEC chairman revealed that Ether could be a security after the Ethereum merger, referring to the protocol’s shifting to a proof-of-stake (PoS) consensus mechanism last year.
At the time, Gensler argued that all PoS tokens could be classified as a security based on the Howey test, used to measure assets that meet security requirements.
According to him, user earnings from betting on such protocols indicate that the tokens are securities and should be regulated under the SEC realm.
“Whatever they are promoting and putting into a protocol, and locking their tokens into a protocol, a protocol that is often developed by a small group of entrepreneurs and developers, I would just suggest that each of these token operators seek to comply, and the same with intermediaries”, he said.
next
Chimamanda is a cryptocurrency enthusiast and seasoned writer focusing on the dynamic world of cryptocurrency. He joined the industry in 2019 and has since developed an interest in the emerging economy. He combines his passion for blockchain technology with his love of travel and food, bringing a fresh and engaging perspective to his work.
