Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), confirmed that the SEC has no authority or intention to ban cryptocurrencies.
Answering questions at the House Financial Services Committee meeting on October 5, Gensler said that banning cryptocurrencies is not within the jurisdiction of the SEC, adding: “This is up to the House.”
“Our mission is to include this space in the investor and consumer protection that we have, and also work with banking regulators and others to ensure that the space is compliant with anti-money laundering and tax compliance regulations,” explained Gensler.
Emphasizing the need to include the crypto market in the SEC’s investment protection scheme, the SEC chairman said: “Many of these tokens are; It passes the test of being an investment contract, surety or guarantee ”, he added.
Gensler also stated that “the financial stability problems that stablecoins can cause” are also a priority for the organization.
Rep. Patrick McHenry criticized the SEC’s stance and actions led by Gensler on digital assets during the meeting, accusing Gensler of failing to comply with the “comment on regulation and procedures, which has long been the practice of the SEC “.
“Some of your comments have raised questions in the market and made the situation even more uncertain. You made thoughtless comments that sparked market activity, you failed to comply with the regulatory process by commenting without due process, and you were disrespectful to US investors. “
Gensler responded to McHenry’s statement saying that he was acting in accordance with the SEC’s code of administrative procedure.
McHenry also reminded Gensler of a statement he made while he was a professor at MIT in 2019, criticizing past decisions by the SEC that classify Bitcoin and Ether as commodities.
When asked what his current take on the matter was, Gensler replied: “I think the securities laws are pretty clear regardless of any token – if you are taking an investment from the public and investors have a reasonable expectation of profit based on the effort of others “. , which falls under the securities law.