US Securities and Exchange Commission (SEC) Chairman Gary Gensler has confirmed that existing laws are sufficient to take enforcement action against non-compliant cryptocurrency companies.
Speaking at the Washington Securities Compliance Forum, SEC Chairman Gary Gensler reiterated his concerns about cryptocurrency regulation. Many congressional Republicans and members of the crypto industry have criticized Gensler for not developing rules that would clarify the status of cryptocurrencies. However, Gensler once again stated that cryptoassets should be subject to existing securities laws.
According to Gensler, the Howey test, which defines securities as “an investment of money in a common enterprise with the expectation of profit from the efforts of others,” is already an adequate explanation. Cryptocurrency investors deserve protection just as much as other investors. Otherwise, Congress could have specified in 1933 or 1934 that securities laws should apply only to stocks and bonds, Gensler noted. He repeated one of his favorite quotes about cryptocurrencies:
In September, Gensler clarified that Bitcoin is not a security and does not meet the Howey test. Earlier, the SEC chairman announced that the agency would spend $2.4 billion to combat crypto companies that do not comply with regulations.
Source: Cryptocurrency
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