SEC Chair Gary Gensler Remains Resolute in Regulating Crypto Despite Court Setbacks
Summary:
SEC Chair Gary Gensler remains determined to regulate the crypto industry despite recent court setbacks. In his prepared testimony for a Senate hearing, Gensler reaffirms his belief that crypto assets are securities and should fall under the authority of the SEC. The testimony addresses the industry's noncompliance with securities laws and draws comparisons to the 1920s. Gensler emphasizes that most crypto tokens meet the criteria of the Howey Test. The SEC's losses against Ripple and Grayscale have influenced other crypto companies facing lawsuits. LBRY, found guilty of violating securities laws, has filed an appeal against the SEC's ruling.
United States Securities and Exchange Commission Chair Gary Gensler is undeterred by recent setbacks in court and remains determined to establish his agency's authority over the crypto industry. Gensler will convey this message to lawmakers on September 12 during a Senate Banking Committee hearing. Despite recent defeats against Grayscale and Ripple, Gensler's prepared testimony reiterates his belief that crypto assets should be treated as securities and regulated accordingly. Gensler highlighted the industry's noncompliance with securities laws, drawing parallels to the 1920s before the establishment of federal securities laws. In his testimony, Gensler asserts that the majority of crypto tokens meet the criteria of the Howey Test, indicating their classification as securities. He also emphasizes that most crypto intermediaries must comply with securities laws. Two significant court losses against Ripple and Grayscale have inspired other crypto companies facing SEC lawsuits to reference these cases in their defense. The SEC is appealing the ruling in the Ripple case, while the judge deemed the SEC's rejection of Grayscale's request "arbitrary and capricious." In response to a previous guilty verdict, blockchain-based payments network LBRY has filed an appeal against the SEC's decision, demonstrating their determination to fight the ruling. LBRY's decision to appeal signifies a change in their initial plan to wind down operations.
Published At
9/12/2023 1:11:57 AM
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