From MIT professor to SEC Chair: Gary Gensler's change of heart on security definition leaves crypto community perplexed.
link to the video : https://ocw.mit.edu/courses/15-s12-blockchain-and-money-fall-2018/resources/session-1-introduction/
In a recent discovery, a video of Gary Gensler from 2018 has surfaced, where he declared that the majority of crypto assets are not classified as securities. At that time, Gensler was serving as a professor at the esteemed Massachusetts Institute of Technology (MIT) and teaching a course on "Blockchain and Money."
As the current Chair of the Securities and Exchange Commission (SEC), Gensler's approach to regulating digital assets has been widely scrutinized and criticized by the crypto community. Congressman Emmer, for instance, has publicly labeled him as an "incompetent cop on the beat" for his enforcement actions. Emmer has pointed out that despite failing to provide clear guidelines for compliance, Gensler has penalized crypto companies for non-compliance.
Furthermore, Ryan Selkis, the founder of Messari, has also criticized Gensler's proposed solution of meeting with the SEC and registering. Selkis believes that it is not feasible for companies to register with the agency due to the complex and opaque regulatory framework surrounding cryptocurrencies.
“The SEC has *never* issued comprehensive guidance about *how* to register. Only one firm who has gone in is still operating in the US in a meaningful way.“
Why backtrack?
As per a lecture on Blockchain and Money delivered by Gary Gensler, he stated that approximately 75% of cryptocurrencies in the United States and other markets do not satisfy the definitions laid out in the Howey test or similar evaluations conducted in other jurisdictions to be classified as securities.
“3/4 of the market is non-securities. It’s just a commodity, a cash crypto.”
The Howey test functions as a means of evaluating whether a transaction can be classified as an "investment contract" and therefore, a security. This test examines whether there is a contract in which money is invested, and there exists an expectation of deriving profit from the work of others.
In September of 2022, while testifying before the Senate Banking Committee, Gensler stated that most cryptocurrencies meet the definition of securities under the Howey test. This declaration is in sharp contrast to his earlier statements made during his tenure as a professor at MIT.
Given Gensler's diverging viewpoints over time, Erik Voorhees, the founder of ShapeShift, has questioned when someone will be apprehended for fraudulent activities. Similarly, Wayne Vaughan, the CEO of Tierion, has voiced his concerns by asking, "What changed?"
The U.S. crypto industry is “dead”
In a recent interview, tech billionaire Chamath Palihapitiya said U.S. regulators had their guns firmly pointed at crypto.
Considering the recent regulatory developments, he concluded that there is an ongoing, deliberate attempt to outlaw the U.S. crypto industry — effectively banning it and forcing the industry to move offshore.
#sec #gensler #twitter #crypto #BTC
Source: cryptoslate
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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.