US SEC chairman emphasizes that crypto projects that obtain funds fall under which security laws fall
US SEC chairman emphasizes that crypto projects that obtain funds fall under which security laws fall
In the Squawk Box of CNBC, the SEC chairman spoke about compliance with legal regulations in the crypto sector. Gary Gensler's answer came when he was asked about Constitutionao, a project that tried to buy a copy of the US constitution through crypto crowdfunding.
The SEC chairman, however, refused to comment on whether (ETH) is to be qualified as security or not. He said :
I will not comment on a project. But they addressed an important point. Crypto token, I will call them, collect money from the public. And share the public to the public that help the public in decision -making, and do you stick to the truth in advertising? asked Gensler.
In addition, Gensler found that the complete disclosure of information is the greatest lack of the crypto industry for compliance with securities laws.
The SEC presidency has no objection to crypto innovations
Sec chairman Gary Gensler said he had no objections to the innovation in the crypto room. However, he believes that this should not be done outside the regulatory area. Gensler said:
There are thousands of these projects that essentially try to collect money from the public so that they can support an entrepreneurial idea. The part is fine. It's called innovation. But it's about bringing it into the securities laws.
He further explained that many crypto projects will argue that they are not securities, but "the facts and circumstances indicate that they are investment contracts, they are securities and they should register".
When it comes to regulating the crypto room, Gensler's point of view was nothing new. In fact, the SEC chairman recently asked the US Congress to give the SEC more regulatory supervision to deal with developments in the crypto room.
The SEC also led a legal dispute with the blockchain startup Ripple based in San Francisco because of the alleged use of XRP crypto as securities. As expected from many market analysts, the years of struggle will finally come to an end.
related : sec takes a surprising step at Ripple, but analysts say that XRP will increase by up to 44% this month
Most likely, the SEC will work closely with other regulatory authorities to create further clarity about the regulations of the cryptoma market.
Source: Crypto-news-flash.com
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