• SEC Chairman Gary Gensler recently claimed that all crypto tokens, except for Bitcoin, are securities and fall under the agency’s purview.
• Following Gensler’s claims, several well-known crypto lawyers and industry members have rebuffed his statements.
• Crypto lawyers argued that Gensler’s opinion is not the law and judges ultimately determine what the law means and how it applies.
SEC Claims All Crypto Tokens Except For Bitcoin Are Securities
During a recent interview, Gary Gensler, chairman of the U.S. SEC, claimed that all crypto tokens, except for Bitcoin, are securities and therefore fall under the agency’s purview.
Crypto Lawyers Rebut SEC Chairman’s Assertions
Following Chairman Gensler’s claims, several well-known crypto lawyers and industry members have rebuffed his statements. An attorney and policy lead at the crypto advocacy group the Blockchain Association argued that Gensler’s “opinion is not the law.” Another lawyer Logan Bolinger also stated in a tweet “that Gensler’s opinions on what is or isn’t a security are not legally dispositive,” adding that judges ultimately determine what the law means and how it applies.
Chairman of The US SEC: Almost Every Crypto Transaction Falls Under Purview Of The Agency
Chairman of the United States Securities and Exchange Commission (SEC) asserted during a recent interview with New York Magazine that almost every crypto transaction already falls under its purview – except for spot transactions in Bitcoin itself and sale/purchase of goods/services with crypto assets – as its has necessary legal mechanisms to oversee cryptocurrency sector.
Genslers Opinion On Crypto Tokens Being Securities
Genser added that these tokens are securities because there is a group in between them with public anticipating profits based on it saying “Everything other than bitcoin … you can find a website, you can find a group of entrepreneurs”. He went on to add they might try to make it hard jurisdictionally by setting up their legal entities offshore or having foundations etc., but at core these tokens still remain securities due to presence of middleman group expecting profits from them.
Conclusion
Chairman Gary Genser’s claims were later opposed by various crypto lawyers who argued his opinion was not legally binding as only judges will be able to decide what exactly constitutes as an asset being classified as security or not according to existing laws in place