Gary Gensler who is the chairman of the U.S. Securities and Exchange Commission (SEC) today issued a statement reaffirming the SEC’s stance on crypto. According to him the crypto industry still needs to be under securities laws in 2022. He noted that the facts and conditions in the crypto market show that many crypto projects are of a securities nature.
In that interview, the SEC chairman reiterated his stance on the need for regulatory compliance in the cryptocurrency industry. While he declined to answer questions about whether Ethereum has an element of security or not, Gensler even gave a general explanation that any crypto asset project that collects funds from the public must comply with the U.S. Security Act.
His comments are in line with the comments of the day period when he was asked about the ConstitutionDAO project which tried to pioneer the U.S. constitution by raising funds in crypto form. He chose not to focus on a particular project but outlined certain criteria in general.
He said any crypto project that involved raising funds from the public should be taken to a higher level. Gensler noted that the main thing he found lacking for the crypto industry in complying with securities laws was failing to provide full information disclosure. Gensler stated he agrees that the crypto industry is innovative, but will need to register with the SEC if it is to continue to collect money from the public.
“There are thousands of these projects basically trying to raise money from the public so that they can support entrepreneurial ideas. That part doesn't matter. It’s called innovation. But the emphasis is on bringing it into securities law. ” - Gensler
He added that while many crypto projects would argue that they are not securities, waima "facts and circumstances show that they are investment contracts, they are securities, and they should register."
