Cryptocurrencies Can’t Undermine Public Trust: SEC Chair Gensler
• SEC Chair Gary Gensler has filed lawsuits against Binance and Coinbase, making clear that digital assets are securities and should be registered with the agency.
• Crypto tokens need to meet the definition of an investment contract in order to be offered to investors.
• Gensler described the current cryptocurrency scene as “Hucksters. Fraudsters. Scam artists. Ponzi schemes”
SEC Lawsuits Against Binance and Coinbase
The U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has recently brought lawsuits against Binance and Coinbase, making it clear that digital assets are considered securities by the agency and must be registered before being offered to investors or meeting certain requirements for exemptions.
Crypto Tokens Must Meet Investment Contract Requirements
Gensler stated that in order for crypto tokens to be offered to investors, they must meet the definition of an „investment contract“ as set out by Congress in the federal securities laws. He said that most crypto tokens will need to register their offer and sale of their investment contracts with the SEC or meet exemption requirements from doing so.
Current Cryptocurrency Scene Described as „Hucksters“
Gensler described the current cryptocurrency scene as one full of “Hucksters, fraudsters, scam artists, Ponzi schemes” – a reminder of what life was like prior to federal securities laws taking effect. He warned about the potential for cryptocurrencies to undermine public trust in capital markets if they are not properly regulated by authorities like the SEC.
Capital Markets Can’t Be Undermined By Cryptocurrencies
In his remarks, Gensler also expressed concern about allowing cryptocurrencies to potentially undermine public trust in capital markets if they are not properly regulated by authorities such as SEC . He believes that proper oversight is key for protecting investors from frauds and scams while also providing them access to legitimate investments opportunities within this asset class