A video from 2018 of the SEC’s Gary Gensler shows him saying that most crypto assets are not securities.
“Three-quarters of the market is non-securities, it’s just a commodity, cash, crypto,” Gensler said.
There have been reactions on Twitter from the crypto community. Coinbase CEO Brian Armstrong tweeted “Wow” in response to the video, while Erik Voorhees, founder of the ShapeShift trading platform said: “When does someone get arrested for fraud?”
2023 Gary Gensler: What happened?
Since taking on the role of SEC chair, Gensler has exhibited a more stringent approach to cryptocurrency regulation:
- Gensler has called for increased investor protection measures, emphasising the need for regulatory oversight in the cryptocurrency space.
- He has suggested that cryptocurrency exchanges should register with the SEC, thereby subjecting them to more rigorous regulations.
- Gensler has hinted at the possibility of classifying stablecoins as securities, which would have significant implications for the industry.
Possible factors influencing Gensler’s evolving stance
Several factors could have contributed to the change in Gensler’s views on cryptocurrency regulation:
- The growing prominence of crypto: The rapid growth and increasing mainstream adoption of cryptocurrencies may have influenced Gensler’s perception of the potential risks and rewards associated with the industry.
- The rise of DeFi and stablecoins: The emergence of decentralised finance (DeFi) and the increasing popularity of stablecoins could have led Gensler to reconsider the regulatory framework surrounding these innovations.
- The evolving regulatory landscape: As global regulators have begun to take more decisive actions concerning cryptocurrencies, Gensler may have adjusted his stance to align with this trend.
Implications for the crypto industry
Gensler’s evolving views on crypto regulation could have significant implications for the industry, including:
- Greater regulatory scrutiny may result in more stringent compliance for crypto exchanges and projects.
- The classification of stablecoins as securities could disrupt the DeFi ecosystem and potentially limit the growth of this sector.
- Increased regulations may also improve investor protection and reduce the prevalence of fraud and scams in the cryptocurrency space.
SEC Chair Gary Gensler’s changing views on cryptocurrency regulation reflect the complex and evolving nature of the industry. As the industry continues to mature and develop, it remains crucial for regulators like the SEC to strike a balance between fostering innovation and ensuring investor protection. Stay tuned to CoinNews for the next updates.