The head of the US securities regulator has again attacked the cryptocurrency sector, claiming that several platforms are operating in breach of the country’s securities regulations.
In a 4-minute video that he released on Twitter on April 27, Securities and Exchange Commission Chair Gary Gensler called cryptocurrency assets “investment contracts” and urged platforms that provide them to register with the SEC to safeguard American investors.
an investment contract exists when you invest money in a common enterprise with a reasonable expectation of profits, to be derived from the efforts of others
“Crypto markets suffer from a lack of regulatory compliance. It’s not a lack of regulatory clarity. […] The law is clear, if you’re a securities exchange, clearinghouse, broker or dealer, you must come into compliance, register with us,” Gensler added.
The SEC has been at the vanguard of the American government’s war on cryptocurrencies. Gensler has consistently argued that all crypto assets fit under the category of securities, with the exception of Bitcoin. According to Gensler, a lot of cryptocurrency companies and platforms that are not SEC-registered are in violation of the laws governing securities.
