SEC Chairman Gary Gensler, who defines the cryptocurrency market as the “wild west” due to its security shortcomings, answered the questions of US Senator Toomey about the classification of cryptocurrencies. Questions addressed to the gens focused on how cryptocurrencies can be classified as securities. SEC Chair reaffirms “more regulatory framework” stance.
Gary Gensler classifies cryptocurrencies
The former MIT professor said on Dec. 3 that he would adhere to the Howey and Reeves tests that have been in place since taking office. However, Gensler noted that the Commission would not be clear on classification as laws and cases set wide parameters. According to the head of the SEC, the Commission is not required to determine whether cryptocurrencies are securities. Asked by US Senator Toomey’s second question, how cryptocurrencies are divided into securities and commodities, Gensler replied that “whether any financial instrument is offered or sold as security depends on certain facts and circumstances.” Toomey continued with…
Toomey responded to Gensler with the words, “Congress needs to act because President Gensler is undecided.” Later, the head of the SEC agreed with this statement and said that Congress needed more regulatory framework regarding cryptocurrencies.
Cryptocoin. com, SEC chairman Gary Gensler’s statements about cryptocurrencies, which he describes as “gambling”, can be viewed here. Apart from these, Gensler is known for his affinity for cryptocurrencies and Blockchain technology and served as a professor at MIT Sloan School of Management. Currently, President Joe Biden serves as the commission’s 33rd SEC chair.
