In a recent interview with NYMAG, Securities and Exchange Commission (SEC)
chairman Gary Gensler laid out his view on the agency’s jurisdiction over the world of cryptocurrencies.
In a not-at-all surprising statement, Gensler made it clear that, in his opinion, nearly all cryptocurrency transactions fall under the SEC’s jurisdiction – with one notable exception.
According to Gensler, “pretty much every sort of crypto transaction already falls under the SEC’s jurisdiction except spot transactions in bitcoin itself and the actual purchase or sale of goods or services with cryptocurrencies.”
This means that while Bitcoin is largely outside of the agency’s purview, every other type of cryptocurrency transaction is subject to SEC oversight and regulation.
Gensler’s view is based on the idea that all cryptocurrencies, other than Bitcoin, are essentially securities. He believes that people behind these cryptocurrencies are using a variety of complex and legally opaque mechanisms to promote their tokens and entice investors.
While these mechanisms may make it difficult to determine the regulatory jurisdiction of some cryptocurrencies, Gensler is clear that he believes they are all securities at their core.
The SEC’s stance on cryptocurrencies has been the subject of much debate in recent years. While the agency has taken a more aggressive approach to regulate the industry than some other regulators, many crypto advocates still believe that the agency’s actions have been too heavy-handed.
For his part, Gensler seems confident that the SEC has all of the legal tools it needs to regulate the crypto industry effectively.
However, given the complex and ever-evolving nature of the world of cryptocurrencies, it remains to be seen whether the agency’s enforcement efforts will be successful in the long run.
