The approval of the Bitcoin ETFs In recent times, in the country of flags, there have been many positive signals, but the president SEC Gary Gensler still wants to bring products, companies cryptocurrency does not guarantee the legal conditions to be targeted.
At the Securities Enforcement Forum on November 4, Chairman SEC Gary Gensler has denied that the concepts of new technology can change the reality of the definition of securities, specifically calling products cryptocurrency and decentralized finance (DeFi).
SEC Chairman Wants to Purge Cryptocurrency Companies
Gary Gensler said that sometimes we only focus on appearance to evaluate. For example, when we hear terms like “decentralized finance (DeFi)”, “cryptocurrency” or “peer-to-peer lending”. These concepts can be easily recognized in terms of price.
“Make no mistake, regardless of brand names or mission statements, we will look at the economic reality of a given product or arrangement to determine if is it compliant with securities laws?”
At the same time, the SEC Chairman has candidly asserted that there is still a large backlog of crypto-based products that fall within the existing definitions of securities, citing the need for an assessment based on facts and circumstances. not new categories. As a result, many in the crypto industry have requested specific guidance, such as which tokens are not securities, expecting the SEC to establish and launch in the future.
Another point of interest in the speech was that Gensler mentioned the battle between the SEC and Ripple. After being asked is the context between the legal authority and Ripple How is it going when the community is slowly siding with the platform, even the CEO Coinbase also voiced support for Ripple. He just summed it up as follows:
“Some market participants might call this regulation by enforcement. But for the SEC there is only enforcement.”