SEC Chief Gary Gensler Affirms Crypto As Securities, Cites 'Fraud, Scams, Bankruptcies'

SEC chief Gary Gensler remains resolute in his belief that many digital currencies fall under existing securities regulations, despite significant resistance from the crypto community.

This perspective, which emphasizes that cryptocurrency enterprises are bound by the same guidelines as traditional finance institutions, was reiterated by Gensler during his speech on Wednesday at the 2023 Securities Enforcement Forum, The Block reports.

His remarks come at a time when the crypto world is buzzing with anticipation, especially with events like Benzinga's Future of Digital Assets conference on Nov. 14 and ongoing debates surrounding the approval status of spot Bitcoin ETFs by the SEC.

Gensler stated, "There is nothing about the crypto asset securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws."

He went on to reference historical decisions, noting, "Congress could have said in 1933 or 1934 that the securities laws applied only to stocks and bonds," according to The Block

"Yet Congress included a long list of items in the definition of a security, including 'investment contract.'" he added.

Also Read: Crypto Industry, Wake Up And Smell The Coffee, Your Security Is A Mess

Highlighting the challenges in the industry, Gensler commented that it's "not surprising" given its susceptibility to "fraud, scams, bankruptcies, and money laundering."

He added, "While many entities in this space claim they operate beyond the reach of regulations issued before Satoshi Nakamoto's famous white paper, they also are quick to seek the protections of the law, in bankruptcy court and litigate their private disputes."

Without delving into specifics, Gensler also mentioned the SEC's actions against various individuals and entities, citing an instance involving the ex-CEO of McDonald's MCD.

According to The Block, he quipped, "And don’t get me started on crypto," alluding to the numerous individuals the SEC has charged in this "highly noncompliant field."

Read Next: Bitcoin ETF May Be A Catalyst For 74% Price Surge In 2024, Galaxy Researchers Say

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Photo: Shutterstock and Third Way Think Tank on flickr