SEC Chair Gensler’s Testimony Sparks Crypto Community Speculation

In his recent testimony before the United States Senate on Banking, Housing, and Urban Affairs, SEC Chair Gary Gensler made statements that have ignited speculation within the crypto community.

While the SEC has been known for its tough stance on the crypto industry, Gensler’s words have sparked hope among supporters of cryptocurrencies, especially regarding the regulation of crypto assets and the potential approval of Bitcoin Spot exchange-traded funds (ETFs).

Gensler’s Remarks On Crypto Raise Questions And Hope

SEC Chair Gensler emphasized the need to prioritize investor protection and ensure compliance with securities laws within the crypto asset securities markets. Gensler highlighted that the legal definition of a security, established in the 1930s, includes the term “investment contract,” which likely encompasses the majority of crypto tokens.

This implies that most crypto tokens are subject to securities laws, obligating intermediaries such as exchanges, brokers, and clearing agencies to adhere to these laws by registering or seeking exemptions.

However, despite the SEC’s longstanding position, as reported by Bitcoinist on July 13, Judge Analissa Torres ruled in favor of Ripple Labs.

The SEC had alleged that Ripple raised over $1.3 billion by selling XRP to investors, classifying it as a security. Nevertheless, the court determined that programmatic XRP sales did not meet the criteria of an investment contract, as they lacked the economic reality of institutional sales.

This ruling favored the notion that there was no reasonable expectation of profits derived from the efforts of others.

Despite this recent development, the SEC’s stance on the industry’s “widespread noncompliance” with securities laws remains unchanged. Gensler reiterated the necessity for enforcement actions to hold wrongdoers accountable and safeguard investor interests.

Additionally, the SEC actively engages in rulemaking efforts to establish regulatory frameworks for crypto m

Go to Source to See Full Article
Author: Ronaldo Marquez

Did you like this?
Tip BTC Newswire with Cryptocurrency