Gary Gensler: The vast majority of cryptocurrencies and ICOs violate U.S. securities laws

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stated that the vast majority of cryptocurrencies and initial coin offerings (ICOs) violate U.S. securities laws.

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stated that the vast majority of cryptocurrencies and Initial Coin Offerings (ICOs) violate U.S. securities laws.

Gensler made the remarks during his speech at the Aspen Security Forum on the 3rd, discussing cryptocurrency. He even agreed with the viewpoint of former SEC Chairman Jay Clayton.

Jay Clayton previously stated that, in his view, "every ICO I've seen is a security." Gensler pointed out that while most cryptocurrencies do not meet the traditional definition of "currency" as a medium of exchange, a unit of account, and a store of value, the underlying blockchain technology may have intrinsic value.

Gensler stated that generally, people buying these tokens are expecting profits, and there is a group of entrepreneurs and technologists nurturing these projects, "I believe we have a crypto market now where many tokens may be unregistered securities that haven't been disclosed or regulated in the markets."

Gensler reiterated his previous stance that stock tokens and security-backed stablecoins "fall under securities laws," meaning they must be registered, and issuers must comply with existing federal laws.

As for the highly anticipated Bitcoin ETF, Gensler has not indicated any specific regulatory measures yet, but has hinted at the importance of investor protection under the law, "Given these important protections, I look forward to staff’s review of such filings."

As of now, more than ten investment institutions including Fidelity, WisdomTree, and VanEck have applied for Bitcoin or Ether ETFs, but none have been approved.

This article is authorized to be reprinted from Horizon News Network