SEC’s Gary Gensler takes another swipe at crypto in educational video
Another swipe has been taken at the crypto industry by the chairman of the US Securities and Exchange Commission, who claimed that many crypto platforms are operating in violation of securities laws.
In a tweet on April 27, Securities and Exchange Commission (SEC) Chairman Gary Gensler shared a 4-minute video of himself describing cryptoassets as “investment contracts” before urging platforms offering such products to register with the SEC to protect American investors.
“An investment contract exists when you invest money in a joint venture with a reasonable expectation of profit, which will come from the efforts of others,” he said.
“Crypto markets suffer from a lack of regulatory compliance. It’s not a lack of regulatory clarity. […] The law is clear, if you are a stock exchange, clearing house, broker or dealer, you need to come into compliance, register with us, Gensler added.
The SEC has been at the forefront of the US crypto crash, with Gensler continually asserting that essentially all crypto assets – except for Bitcoin (BTC) – fall under the classification of securities.
It is Gensler’s view that many crypto firms and platforms violate securities laws if they are not registered with the SEC.
In the comments of Gensler’s latest video, many were quick to point out that before he took the helm at the SEC, Gensler had a completely contradictory view of the crypto market.
Over the past week, a viral video has circulated across Crypto Twitter in which Gensler can be seen lumping crypto into the same category as cash and commodities and describing digital assets as “non-securities.”
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The SEC chairman’s comments come from a “Blockchain and Money” lecture in 2018 when Gensler was hired as a professor at the Massachusetts Institute of Technology (MIT).
“Three quarters of the market is non-securities, it’s just a commodity, cash, crypto,” Gensler said at the time.
Earlier this month, Gensler was grilled by members of Congress during an April 18 hearing that saw much criticism over his leadership and the SEC’s approach to crypto regulation, which appears to be regulation by enforcement.
During the hearing, Gensler refused to confirm on the record whether he believed Ether (ETH) was a security or not.
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