SEC Chairman Stresses that Most Cryptocurrencies are Securities Except Bitcoin

02/27/2023 00:15 • Metaverse Matters • 84 views

According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all types of cryptocurrency transactions except Bitcoin belong to securities transactions under the jurisdiction of the SEC. These tokens are securities, because there is an intermediary group, and the public expectation is based on the group’s profits. Behind these cryptocurrencies, some people use various complex and legally opaque mechanisms, But at the most basic level, they are trying to promote their Token and attract investors. Because of its unique history and creation story, Bitcoin is fundamentally different from other encryption projects in this respect.

US SEC Chairman: “All cryptocurrencies except Bitcoin” are securities

Analysis based on this information:

The Securities and Exchange Commission’s chairman, Gary Gensler, has emphasized that nearly all cryptocurrency transactions, aside from Bitcoin, are categorized as securities transactions under the SEC’s jurisdiction. The reason why these tokens are deemed securities is that there exists an intermediary group, who are perceived to profit from the public’s expectations. While the mechanisms behind these cryptocurrencies may be legally complex and opaque, fundamentally, they are created to push the token and bring in investors.

In an interview with the New York Times, Gensler shed light on his position regarding cryptocurrencies, stating that many digital assets share features with traditional securities, particularly in their investment contracts. Gensler maintained that these tokens must come under the SEC’s authority, which has the legal mandate to supervise transactions and oversee disclosure requirements.

The chairman clarified that the classification of cryptocurrencies as securities does not necessarily entail that they are unlawful or illegitimate. Instead, this recognition subjects them to standards similar to those upheld by conventional securities markets. Gensler also mentioned that the absence of a central authority in the world of cryptocurrencies could pose difficulties in implementing these requirements effectively.

However, Gensler made it clear that Bitcoin was fundamentally different from other cryptocurrencies since it has a unique backstory and creation story. Bitcoin’s creation is shrouded in mystery, as it was initiated by an anonymous figure, known only by the pseudonym, Satoshi Nakamoto. Unlike other digital assets, Bitcoin’s fate is not tied to the expectations of a particular group or company, but rather the changing demands of the market.

In conclusion, Gensler’s statement indicates that the SEC is keen on regulating cryptocurrencies to ensure transparency, accountability, and investor protection. While this may bring some difficulties, it is essential to ensure that the digital asset market keeps up with the principles and standards of traditional capital markets.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/02/27/sec-chairman-stresses-that-most-cryptocurrencies-are-securities-except-bitcoin/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

SEC Chairman Stresses that Most Cryptocurrencies are Securities Except Bitcoin

US SEC Chairman: “All cryptocurrencies except Bitcoin” are securities

Recommended articles