SEC Chairman Warns About Cryptos Under Securities Law


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Gary Gensler, chairman of the U.S. Securities and Exchange Commission, told Democratic Congressman Mike Quigley at a surveillance hearing held by the House Allocation Committee that there are many cryptocurrencies that fall under federal securities laws:

“You are right to say that there are many cryptos that fall under the securities law. Our agency is also trying to enforce the law. However, there are thousands of cryptocurrencies and we were able to take action for only 75 of them. There are others who are currently not in compliance with the law. “

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In his speech, Gensler wrote that asset managers who invest in unregistered securities can also be examined.

“The SEC has been consistent in communicating with market participants that those using initial coin offers to raise capital or trade securities must comply with federal securities laws. Asset managers who invest in these assets may also be subject to securities laws. ”

Gensler also renewed its intention to work with Congress to regulate exchanges:

“The reported transaction volume in recent weeks has increased from $ 130 billion to $ 330 billion per day. However, as the tokens are traded on unregistered crypto exchanges, these figures cannot be audited or reported to regulatory authorities. This is just one of the regulatory gaps in crypto asset exchanges. “

The SEC chief is currently in talks with other federal agencies to fill legal loopholes in crypto.