The Chairman of the Securities Exchange Commission (SEC) Gary Gensler has emphasized the fact that there is no need for additional legislation for the cryptocurrency industry.
According to Gensler, the SEC is in the right position to define what securities really mean. The regulator is the leading authority for the digital asset sector and therefore, its policies should not be undermined in any way.
“I think there is one agency — the Securities and Exchange Commission, overseen by two committees — the House Financial Services and Senate Banking, and the courts that define what a security is and not individual crypto exchanges selecting that,” the SEC Chair Gensler said
In his conversation with reporters on Wednesday after a House Appropriations Committee hearing, the SEC Chair clarified that the present securities laws encompass most of the activity that happens in the crypto markets. Hence, if Congress decides to act and introduce additional crypto legislation, it should in no way cause the existing laws to become redundant or undermined by lawmakers.
“If Congress were to act, though I don’t think we need these authorities, not to undermine inadvertently through definitions of what’s in or out, or in essence allowing for conflicts that we don’t allow,” Gensler further explained, adding that “I think many of the legislative vehicles would, if adopted, would undermine the securities remit.”
SEC Categorize Crypto as Securities
Already, United States Attorney John E. Deaton mentioned that the region is lagging in terms of enacting strict crypto regulation.
He believes that it would take a longer time to achieve a crypto sector that is completely regulated by law. Attorney Deaton predicted that the earliest this can become a reality is in the first half of 2025. In addition, he made a call to other legislators and industry players to fight against the SEC enactment policy.
At the House Appropriations Committee hearing, Gensler established that most cryptocurrencies as are securities and must, therefore, come under the securities laws. This securities law also applies to foreign investors who trade with U.S. investors. “If you’re touching U.S. investors, selling these tokens to U.S. investors then you come under either the securities laws” or the laws under the CFTC, He said.
