fbpx
QQQ
+ 2.15
345.59
+ 0.62%
DIA
+ 3.22
335.56
+ 0.95%
SPY
+ 2.53
420.07
+ 0.6%
TLT
+ 0.23
143.04
+ 0.16%
GLD
-0.11
166.25
-0.07%

New SEC Chairman Gary Gensler Confirms A Lot Of Cryptocurrencies 'Are Indeed Securities,' Paving The Way For New Legislation

May 7, 2021 2:18 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
New SEC Chairman Gary Gensler Confirms A Lot Of Cryptocurrencies 'Are Indeed Securities,' Paving The Way For New Legislation

Gary Gensler, the new chairman of the Securities and Exchange Commission, believes that more regulation is required in crypto markets.

What Happened: In an interview with CNBC on Friday, Gensler said that “greater investor protection” in the realm of cryptocurrencies was the need of the hour.

“To the extent that something is a security, the SEC has a lot of authority. And a lot of crypto tokens — I won’t call them cryptocurrencies for this moment — are indeed securities,” he said.

Drawing attention to the enforcement actions brought by his predecessors, Gensler indicated that he was in favor of bringing these “securities or investment contracts” back into the rules.

While his statements are good news for XRP issuer Ripple, which is currently fighting the SEC’s allegations of XRP token offering being unregistered securities offering, some cryptocurrencies like Bitcoin (CRYPTO: BTC) are definitely in the clear.

With respect to Bitcoin in particular, Gensler noted that the value of the leading digital asset accounted for more than half of the $2 trillion-dollar asset class that is cryptocurrencies.

“It’s a digital, scarce store of value, but highly volatile, and there’s investors that want to trade that, and trade that for its volatility, in some cases just because it is lower correlation with other markets. I think that we need greater investor protection there.”

Gensler, who taught the course “Blockchain and Money” at MIT, has been viewed by many in the crypto community as someone who recognizes the potential of digital assets.

See also: What Gary Gensler's Confirmation As SEC Chair Means For Crypto Industry

Despite his concern about the lack of regulation in crypto markets, he also stated that Bitcoin is a “speculative store of value” and the SEC should be technology-neutral when evaluating innovations in markets.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Two South African Brothers Disappear With $3.6B Worth Of Bitcoin In Biggest Scam To Date

Ameer and Raees Cajee, founders of South African crypto exchange Africrypt, have reportedly disappeared with 69,000 Bitcoin (CRYPTO: BTC) $3.6 billion worth of client funds. In doing so, twenty-year-old Ameer Cajee and his seventeen-year-old brother Raees Cajee may have pulled off the biggest exit scam in history. read more

Crypto Bank Nexo Lists Polkadot, Lets Users Earn 8% APY

Crypto bank Next integrated Polkadot (CRYPTO: DOT), with support for buying, selling, earning interest, or borrowing against the coin. What Happened: According to an announcement shared with Benzinga, Nexo customers will be able to earn up to 8% interest and borrow against DOT at just 6.9% APR within the platform. read more

South Korean Giant's Token Rallies 50% Following Binance Partnership News

Klaytn (CRYPTO: KLAY), the cryptocurrency of South Korean internet giant Kakao Corp. (KRX: 035720), rallied over 50% after the news of a partnership with the world's top crypto exchange Binance. read more

JPMorgan Still Bearish On Bitcoin, Expects Decline To $25,000: Report

JPMorgan Chase & Co anticipate a further decline in the price of Bitcoin (CRYPTO: BTC) in the coming weeks. read more