Der politische Entscheidungsträger hat für seine Behörde, die mit der Regulierung von Wertpapieren in den Vereinigten Staaten beauftragt ist, weiterhin einen Anspruch auf die Crypto-Asset-Industrie geltend gemacht.
According to Gensler should cryptocurrencies be regulated in the same way as stocks. Speaking on reducing risk and increasing transparency in derivatives at the International Swaps and Derivatives Association annual meeting on May 11, he said:
“Most crypto tokens involve a group of entrepreneurs raising money from the public in anticipation of profit – the hallmark of an investment treaty or security under our jurisdiction.”
safety or not safety
Gensler is aiming for full control over the regulation of the crypto sector, which will likely lead to harsh restrictions on companies and investors in the country.
He claimed that very few crypto assets like commodities or digital gold work, so his agency should be in charge of them and not the Commodities Futures Trading Commission (CFTC).
“Most crypto tokens are investment contracts under the Supreme Court Howey test,” he added.
The Howey test references a 1946 US Supreme Court case to determine whether a transaction qualifies as an investment treaty. Under US law, an investment treaty occurs when “money is invested in a common enterprise in which there may reasonably be expected to be some profit from the efforts of others.” Gensler believes this is the case for most digital assets.
If US lawmakers designate cryptocurrencies as securities, companies that trade them would be subject to the strict regulations and registration requirements that companies that offer securities are subject to.
According to Gensler, when a derivative contract known as a swap is based on a crypto asset, it is a security-based swap, which is subject to SEC registration, adding:
“It is important to recognize that if the underlying asset is a security, the derivative must comply with securities regulations.”
Gary Gensler. Bloomberg
The SEC chairman also wants decentralized exchanges that offer derivatives to be registered with the agency.
Those who oppose this line of thinking, like Senator Cynthia Lummis and Senator Kirsten Gillibrand, believe crypto assets are commodities and should be regulated by the CFTC.
The crypto market keeps crashing
The call for stricter regulations comes at a time when crypto markets are grappling with another ongoing one bear market devices.
The cumulative market capitalization was slashed another 13% on the day to $1.2 trillion, its lowest level in about a year.
Featured image courtesy of Bloomberg
Source: Crypto News Deutsch