As the chairman of the United States Securities and Exchange Commission, Gary Gensler, prepares to appear before a Senate committee on Tuesday, indications have emerged that he plans to reiterate his belief that many major cryptocurrency exchanges need to register as securities exchanges.
The stand Gensler is expected to take, which came as a surprise to no one, was confirmed in a prepared statement for his testimony at the Senate Committee on Banking, Housing, and Urban Affairs. The Senate Committee meeting is scheduled to hold on Sept. 14.
In the statement, Gensler explained that the Commission was working hand-in-hand with the Commodities Futures Trading Commission for investor protection in crypto markets.
Many platforms have dozens or hundreds of tokens on them. While each tokens legal status depends on its own facts and circumstances, the probability is quite remote that, with 50, 100, or 1,000 tokens, any given platform has zero securities.
He explained that for the avoidance of doubt, to the extent that there are securities on these trading platforms, the United States laws requires them to register with the Commission unless they qualify for an exemption.
In August, Gensler spoke about his interest in the introduction of crypto-related policy changes surrounding token offerings, decentralized finance, stablecoins, custody, exchange-traded funds and lending platforms.
“We just dont have enough investor protection in crypto finance, issuance, trading, or lending,” said Gensler. “Frankly, at this time, its more like the Wild West or the old world of buyer bewarethat existed before the securities laws were enacted. This asset class is rife with fraud, scams, and abuse in certain application.”