SEC Chairman Gary Gensler: All Cryptocurrencies Apart From Bitcoin Are Securities

Chairman of the US Securities and Exchange Commission, Gary Gensler. (Photo; Doc. Beamstart)

JAKARTA - The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has again warned the crypto industry. He considered that all crypto transactions other than Bitcoin must comply with securities laws.

The statement was made by Gensler to New York Mag and has sparked reactions across the crypto industry. Gensler considers that all crypto assets and transactions must be regulated by US securities laws, except spot trading for Bitcoin.

Although official classification for crypto assets has not yet been carried out, Gensler stated that "all other than Bitcoin" is securities. He suspects that the people behind crypto projects and networks use complicated and legally unclear mechanisms to lure investors to buy tokens.

Gensler's opinion is not supported by most financial lawyers. Jake Chervinsky, lawyer and policy chief at the Blockchain Association, stated that Gensler's opinion is not legal, and the SEC has no authority to regulate crypto assets unless he proves his case in court.

Chervinsky also said that the idea had been backed by SEC Commissioner Hester Pierce, who urged Congress to accelerate the rollout of laws and official classification of crypto assets.

Reap Criticism

Regulators like the SEC will continue to take law enforcement action against crypto until there is a strong regulatory framework for digital assets in the US. However, some observers criticized this action and called it inefficient and unfair to regulate the growing industry. One example is the SEC's crackdown on Kraken earlier this month.

However, the debate over regulating crypto assets continues, and crypto industry observers are waiting enthusiastically to see how this regulation will develop in the future.

Although Gary Gensler has confirmed that all crypto assets other than Bitcoin are considered securities and subject to SEC laws, many critics consider his approach to being too aggressive and potentially detrimental to innovation in the growing crypto industry.

Some people have also criticized the lack of regulatory clarity and cast doubt on the SEC's ability to deal with the fast-growing industry. Before making drastic decisions about regulating the crypto industry, it is important to consider how such actions will affect innovation and economic growth.