Crypto

Potential SEC U-turn on Crypto Bill Sparks New Debate

The debate on how to regulate the crypto market has been going on for a long time. The SEC has been adamant about subjecting the industry to its securities law. SEC Chairman Gary Gensler recently said that most coin offerings are subject to securities law.

One last comment from Gensler sparked a new debate about whether crypto tokens are securities or commodities. In a virtual conference organized by the Robert F. Kennedy Human Rights Compass, he made interesting comments.

Investor Protection Warning

Gensler repeated his earlier warnings about protecting investors in the crypto space. He said that the regulatory body would use the existing framework to focus on crypto projects. Some crypto projects offering returns could be “too good to be true”, he warned investors.

The SEC Chairman said:

“There are a small number of tokens that (their) predecessors talked about that may not pass the test that they are commodities. They may even have a large percentage (share) of the crypto market.”

However, he said that most of the tokens currently on the crypto market have security attributes. In the meantime, the SEC’s crypto enforcement will focus on using existing authority, he explained.

’20th century regulations for 21st century technology’

Meanwhile, Senator Cynthia Lummis, who is behind the recently introduced crypto bill, said it’s time to update the regulations. On Tuesday, she tweeted,

“More than 34 million Americans report that they own some form of digital assets. We are regulating this 21st century technology with 20th century regulations. It’s time for an update, and the Lummis-Gillibrand plan does it.”

In response to this, Digital Asset Investor, a cryptocurrency enthusiast, said that Gensler was trying to use 20th century regulations to control most of the digital asset space. He wondered what he was missing, since the bill also supported the SEC’s crypto authority.

The bill, which laid the groundwork for comprehensive crypto regulation, called for the creation of a crypto advisory committee to help guide regulators.

Anvesh reports major announcements regarding the adoption of cryptocurrencies by institutions and popular personalities. Having been associated with the cryptocurrency industry since 2016, Anvesh is a strong advocate for decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and contact anvesh (at) coingape.com

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication bears no responsibility for your personal financial loss.

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