SEC Chairman Gensler: Many tokens on Coinbase may be securities and should be registered with regulatory authorities.

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), stated on Tuesday at the Senate Banking Committee that cryptocurrency exchanges like Coinbase should register with regulatory authorities.

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stated on Tuesday at the Senate Banking Committee that cryptocurrency exchanges like Coinbase should register with regulators.

Gary Gensler's "clear" stance was not a proactive declaration, but was indirectly implied in response to a question from Democratic Senator Elizabeth Warren, who is against cryptocurrencies.

It is well known that Elizabeth Warren has been highly critical of cryptocurrencies, believing that the financial system is under threat from DeFi, crypto network attacks, and stablecoins. She also pointed out that cryptocurrencies are shadow banks trying to turn grains into gold.

During the committee meeting, Elizabeth Warren gave an example where she invested her last $100 in Ether on the cryptocurrency exchange Coinbase on Monday, but woke up on Tuesday to a market that seemed to be falling. She wanted to sell but found Coinbase down. What should she do?

Senator Catherine Cortez Masto asked if the SEC has enough capability to regulate cryptocurrencies.

In response, Gary Gensler mentioned that the SEC does not directly oversee cryptocurrency exchanges. Congress could assist in regulating between banking regulatory agencies and stablecoin oversight. Many assets listed on Coinbase may be securities, even though they have dozens of tokens that could be securities, Coinbase does not have a securities exchange operation license.

Just on Monday, Gary Gensler stated in a document submitted to the Senate that any exchange trading listed securities must register with the SEC.

Last week, the cryptocurrency community criticized Gary Gensler for suggesting possible legal action against Coinbase, a cryptocurrency exchange listed on Nasdaq.

Senator Pat Toomey asked Gary Gensler how he made the distinction between which assets on Coinbase are securities and which are not, expressing frustration over the lack of useful public guidance from the SEC. Gensler responded that "a few" cryptocurrencies are not securities, but he believes many are.

This article is authorized republished from Horizon News Network