According to CoinDesk: Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), is holding on to his critical stance on the cryptocurrency industry despite recent setbacks in court. Amid the agency's legal battles with the industry, including Ripple's recent court victory and the SEC's failed attempt to disrupt Grayscale's bitcoin ETF, Gensler is warning of potential noncompliance with securities laws. In written testimony to the Senate Banking Committee, Gensler reiterated his concern over the sector flaunting securities regulations: "Given this industry's wide-ranging noncompliance with the securities laws, it's not surprising that we've seen many problems in these markets," he said.
Gensler's testimony includes his view that "the vast majority of crypto tokens likely meet the investment contract test." As such, he argues that most intermediaries in the crypto market must comply with securities laws. However, Gensler also notes that he will not be able to comment on any "active, ongoing litigation" during the SEC oversight hearing, which may exclude discussion on high-profile cases against Coinbase and Binance.
Gensler plans to discuss recent enforcement actions and two rule proposals on custody and exchange definitions that could affect crypto firms. Despite recent court judgments allowing some crypto companies to quote such rulings in their dismissals of suits against the regulator, Gensler is adamant about maintaining compliance with securities laws in the sector.
