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SEC Chairman Asserts that Only Bitcoin is Not a Security Under SEC Jurisdiction

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According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all type…

SEC Chairman Asserts that Only Bitcoin is Not a Security Under SEC Jurisdiction

According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all types of cryptocurrency transactions except Bitcoin belong to securities transactions under the jurisdiction of the SEC. These tokens are securities, because there is an intermediary group, and the public expectation is based on the group’s profits. Behind these cryptocurrencies, some people use various complex and legally opaque mechanisms, But at the most basic level, they are trying to promote their Token and attract investors. Because of its unique history and creation story, Bitcoin is fundamentally different from other encryption projects in this respect.

US SEC Chairman: “All cryptocurrencies except Bitcoin” are securities

Interpretation of the news:


The head of the Securities and Exchange Commission (SEC), Gary Gensler, made headlines recently by announcing that the overwhelming majority of digital currencies ought to be regarded as securities, naming only Bitcoin as the exception. He contended that the other tokens are securities since their creators utilized intermediaries to attract investment and generate public anticipation based on those intermediaries’ profits. Furthermore, he noted that various persons behind these digital currencies employ convoluted legal mechanisms to promote their tokens and attract investors. Thus, these cryptocurrencies ought to be classified and regulated as securities.

Gensler’s assertion is significant since it signifies a significant shift in attitude among the regulators, who have typically been hesitant to regulate cryptocurrencies. The SEC regards securities as investment contracts that fall within its purview, empowering it to oversee their marketing, trading, and exchange. By equating digital currencies to securities, Gensler is providing a basis for the SEC to exert jurisdiction over them. The implications of this are far-reaching, potentially increasing the regulatory pressure faced by new cryptocurrencies and sparking debates among various parties regarding the extent of regulators’ authority.

Gensler further stated that the exception to this rule is Bitcoin because of its fundamentally different creation story and history. Unlike other digital currencies, Bitcoin was initially intended to be decentralized and free of governmental oversight, which Gensler believes implies that it cannot be considered a security. As a result, Bitcoin will continue to exist outside of the SEC’s jurisdiction.

As digital currencies continue to expand in popularity, regulators are attempting to balance investor protection with the essential need to maintain innovation in the financial industry. Gensler’s recent announcement seems to be consistent with recent remarks from the Department of Justice and the Financial Crimes Enforcement Network, which are also making it clear that they intend to strictly enforce anti-money laundering and counterterrorism financing regulations throughout the crypto space.

In conclusion, it appears that the SEC is intending to intimidate and regulate the cryptocurrency market in a manner that will keep bad actors in check while still allowing innovation to thrive. Although this change may seem alarming at first glance, it is ultimately beneficial for the ecosystem, as it will foster greater trust and accountability. However, Bitcoin’s exemption from SEC jurisdiction serves as a reminder that the currency can continue to assert its independence from regulatory pressures.

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