{"id":12268,"date":"2023-06-08T20:23:48","date_gmt":"2023-06-08T20:23:48","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=12268"},"modified":"2023-06-08T20:23:49","modified_gmt":"2023-06-08T20:23:49","slug":"secs-gensler-rejects-regulatory-clarity-arguments-in-speech-on-crypto-regulation","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12268","title":{"rendered":"SEC&#8217;s Gensler rejects &#8216;regulatory clarity&#8217; arguments in speech on crypto regulation"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n <\/p>\n<p>In prepared remarks at the Piper Sandler Global Exchange &amp; Fintech Conference on June 8, SEC Chair Gary Gensler addressed the ongoing regulatory issues surrounding the cryptocurrency industry at length, arguing that the crypto community\u2019s assistance on \u201cregulatory clarity\u201d lacks merit and defending his agency\u2019s enforcement actions.<\/p>\n<p>Gensler said he has been straightforward in his approach, rejecting once again the notion that existing securities laws are inadequate to govern digital assets.<\/p>\n<p>\u201cCongress\u2019s purpose in enacting the securities laws was to regulate investments, in whatever form they are made and by whatever name they are called,\u201d Gensler said, quoting Justice Thurgood Marshall\u2019s decision in the Supreme Court case of Reves.<\/p>\n<p>\u201cCongress included a long list of 30-plus items in the definition of a security,\u201d he continued, \u201cincluding the term \u2018investment contract.&#8217;\u201d He cited the Supreme Court\u2019s flexibility in the definition of a security in <em>SEC v. W.J. Howey Co.<\/em>: \u201cIt embodies a flexible, rather than a static, principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits.\u201d<\/p>\n<p>He also countered arguments that securities law from the 1930s could not encapsulate blockchain technology:<\/p>\n<p>\u201cSatoshi Nakamoto\u2019s innovation spurred the development of crypto assets and the underlying blockchain ledger technology. Regardless, however, of the ledger being used, be it a spreadsheet, a database, or blockchain technology, when investors put their money at risk, it\u2019s the economic realities of the investment that matter.\u201d<\/p>\n<h2>\u2018Economic realities\u2019<\/h2>\n<p>Gensler emphasized in his speech that the language used to label an investment contract does not alter what it fundamentally is. \u201cAcross decades of cases,\u201d he said, \u201cthe Supreme Court has made clear that the economic realities of a product\u2014not the labels\u2014determine whether it is a security under the securities laws.\u201d<\/p>\n<p>Addressing claims of \u201cfair notice,\u201d Gensler cautioned against the disingenuous tactics employed by some crypto market participants. He stated, \u201cWhen crypto asset market participants go on Twitter or TV and say they lacked \u2018fair notice\u2019 that their conduct could be illegal, don\u2019t believe it. They may have made a calculated economic decision to take the risk of enforcement as the cost of doing business.\u201d<\/p>\n<p>Still, the SEC chair allowed room in his speech for a crypto sector that complies with U.S. law, arguing against the idea that compliance\u00a0 was \u201cnot possible\u201d under existing rules:<\/p>\n<p>\u201cI disagree with the notion\u2014and recent history disproves it\u2014that crypto intermediary compliance isn\u2019t possible. I do recognize\u2014and, again, think it\u2019s appropriate\u2014that it takes work. It\u2019s not just a matter of \u201cpaying lip service to [the] desire to comply with applicable laws\u201d or seeking a bunch of meetings with the SEC during which you\u2019re unwilling to make the changes needed to comply with the securities laws.\u201d<\/p>\n<p>\u00a0<\/p>\n<p>Posted In: Featured, Regulation<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/defiant-gensler-rejects-regulatory-clarity-arguments-in-speech-on-crypto-regulation\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In prepared remarks at the Piper Sandler Global Exchange &amp; Fintech Conference on June 8, SEC Chair Gary Gensler addressed the ongoing regulatory issues surrounding the cryptocurrency industry at length, arguing that the crypto community\u2019s assistance on \u201cregulatory clarity\u201d lacks merit and defending his agency\u2019s enforcement actions. Gensler said he has been straightforward in his [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12269,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-12268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12268","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12268"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12268\/revisions"}],"predecessor-version":[{"id":12270,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12268\/revisions\/12270"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/12269"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12268"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}