The Securities and Exchange Commission’s Chairman, Gary Gensler, informed Congress that the SEC is not going to ban cryptocurrencies. This is a big reduction, although Gensler then mentioned “that would be up to Congress.” The SEC Chairman is in the course of fairly the press tour, spreading his opinions on crypto round, clarifying his stance. Those opinions had lots of people nervous, however at present Gensler particularly mentioned an outright ban isn’t on the playing cards.
Related Reading | SEC’s Gary Gensler Crumbles When Asked If Ethereum Is A Security
SEC Chair: No curiosity in a crypto ban pic.twitter.com/9a4v4oSig4
— Blockworks (@Blockworks_) October 5, 2021
The SEC Chairman spoke for 4 hours with the House Committee on Financial Services. At one level, Rep. Ted Budd requested him point-blank:
“But, no bans that you’re interested in implementing via the SEC? As China has done, really, to funnel everyone through their own digital currency”
And Gary Gensler answered:
“No, I mean, that would be up to Congress. What we’re really working with are the authorities that you’ve given us. And I’ve said this, I think that many of these tokens – based on the facts and circumstances – do meet the test of being an investment contract, or a note, or some other form of Security. That we bring them within the investor protection remit of the SEC.”
In brief, the SEC is making an attempt to manage and management. Not to ban.
What Does Gary Gensler Think About Cryptocurrencies?
Let’s not beat across the bush, Gensler thinks that almost all cryptocurrencies are unregistered securities. And that Cryptocurrency Exchanges ought to register with the SEC. And that stablecoins are harmful. However, that’s probably not an issue in the event that they’re simply making an attempt to manage the house. If the SEC wished to ban, it will be a complete completely different sport, however they’re not.
In a current interview with the Washington Post, Gensler defined his place clearly:
“One of the core issues is that there are platforms: trading platforms where you can buy and sell these tokens; lending platforms, where you can earn a return on these tokens that have not just dozens of tokens but sometimes hundreds or thousands of tokens. And it’s highly likely that they have on these platforms, securities, investment contracts, or notes or others, that fit the definition of security. Those platforms should come in, they should figure out how to register, be an investment–investor protection remit.”
In the same interview, Gensler singled out stablecoins:
“On something called stablecoins, and how the banking agencies–and we, too, market agencies–coordinate because these stablecoins may have attributes of investment contracts, have some attributes like banking products, but the banking authorities right now don’t have the full gamut of what they need.”
ETH value chart for 10/06/2021 on Coinbase | Source: ETH/USD on TradingView.com
The Limitations The SEC Has To Deal With
There are two messages current in all of Gary Gensler’s communications. 1.- Cryptocurrencies fall into his company’s jurisdiction. 2.- The SEC wants extra assets to have the ability to regulate crypto. That’s the core of his quest. When he says, “what we’re really working with are the authorities that you’ve given us,” that is what Gensler means. He lately came out and just said it:
Related Reading | Why U.S. Senator Warren Gave SEC Deadline To Clarify Crypto Regulation
“Gary Gensler had told the Senate that his agency was currently operating with less staff than it was five years ago. This has made it impossible for the agency to focus on the things that need its attention. Talking to CNBC, the SEC boss said straightforwardly, “We are short-staffed.”
Even although he could be proper about Altcoins being Securities, his endgame is obvious. He desires a much bigger finances and a much bigger stage. And there’s no greater present than the crypto-circus proper now.
Featured Image by Michael on Unsplash - Charts by TradingView