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- Gary Gensler, president of the United States Securities and Exchange Commission (SEC), has become increasingly aggressive with cryptocurrency.
- Marcus sotiriou says that the dry cannot sue every business and that the opinion of gensler is not the law.
Securities and Exchange Commission (SEC) Chair Gary Gensler recently opined that all tokens, except for Bitcoin (BTC), are securities.
The second president's comments are part of his aggressive stance against crypto tokens. However, Gensler’s opinion isn’t the law, Marcus Sotiriou, an analyst at publicly-listed digital asset broker GlobalBlock said in a market commetary.
SEC Chair said all crypto except BTC are unregistered securities
Gensler recently told the New York Magazine that for every other cryptocurrency that’s not bitcoin, there is a website, a foundation, entrepreneurs, or legal entities set up in a tax haven.
In his opinion, projects continue to be considered securities offers, even if they try to make their application difficult under existing securities laws.
The SEC boss has previously said it will not ban crypto, but it also over the past two years increased its enforcement actions across the space. In the last two years, it has also increased its enforcement actions across the sector.
The regulator continues to fight in court against the corrugation laboratories, the creator of XRP cryptocurrency, over allegations that the token was offered as unregistered security.
Ripple's Chief Legal Counsel emphasized that Gensler has to "recuse himself" from any other enforcement action on the basis of his bias of results. Crypto attorney psa: president gensler still proclaimed that every crypto-currency, except BTC, is an unregistered security. Antoniu v. SEC (8th Cir. 1989)
— Stuart Alderoty (@s_alderoty) February 27, 2023
Antoniu v. SEC (eighth Cir. 1989)—
SEC Chair’s stance Chair’s stance “not the law”Sotiriou says the SEC taking the current path could see it lose ground relative to the number of new crypto tokens coming into use across the industry.not the law”
Sotiriou says the SEC taking the current path could see it lose ground relative to the number of new crypto tokens coming into use across the industry. Sec In other jurisdictions, the regulator has prosecuted many entities and individuals, entering into settlement agreements with many of them in the context of increasing law enforcement efforts.
“Ideally, the number of chips that the SEC would like to register as securities is over 9,000. If they were able to prosecute less than 500 companies, they will probably be losing ground relative to new tokens being created,” Sotiriou noted.
If they have been able to pursue fewer than 500 companies, they are likely to lose ground when it comes to the creation of new tokens,' said Sotiriou. If it can't prosecute all of the companies it could target, the regulator may need to "prioritize". But how does the guard dog decide who to prosecute and who not to prosecute?
“Ultimately, Gensler’s opinion is not the law, and every case the SEC brings up has to be proven in court. The longer this uncertainty is in limbo though, the worse it is for the whole industry,” he added.
