In an upcoming testimony, Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), is set to underscore the ongoing argument that the majority of cryptos should be considered securities.
“There is nothing about the crypto asset securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws,” the document stated.
Gensler’s Push For Crypto Being A Security
The document states that Gary Gensler, who is critical of crypto, will assert that they should be subject to securities regulations.
“Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well.”
The document points out that as financial products continually evolve, there is a need for constantly updated regulations.
Gensler is also set to reiterate his argument that “the vast majority” of crypto tokens meet the investment contract test.
However, it notes that Gensler will not be commenting on any of the SEC’s ongoing litigations.
In the ongoing litigations, the SEC has initiated lawsuits against two major crypto exchanges, Coinbase and Binance.
SEC Action In Recent Times
The SEC initiated these lawsuits on June 5th and 7th, respectively. While Binance is contending with a series of allegations, both exchanges share the common accusation of offering unregistered crypto services.
The recent ruling in the SEC’s lawsuit against Ripple determined that XRP is not a security for retail purposes.
The SEC secured a partial victory when the court ruled that XRP is classified as a security for institutional sales. However, the SEC has firmly declared its intention to appeal the unfavorable side.
Read more: Everything You Need To Know About Ripple vs SEC
The SEC have argued that this ruling could potentially impact other ongoing SEC litigations of similar nature. These include Coinbase and Binance, as it could serve as evidence against them.
The courts have approved the motion. The likelihood is high that the court will hear the case in the second quarter of 2024.
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