SEC Chair Gensler: Crypto Regulation is Unavoidable
• Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), has been causing some controversy among the crypto community since 2021.
• He sued Binance and Coinbase, as well as threatening to deem every single altcoin a security.
• To make matters worse, he even failed to identify what Ether is during a House Financial Services Committee hearing.
Gensler’s Crypto Controversies
Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), has been stirring up some drama in the cryptocurrency community since 2021. His latest move was suing both Binance and Coinbase for their alleged violations of securities laws. In addition, he threatened to deem every single altcoin a security. This put many retail investors in jeopardy, especially with Gensler’s lack of clarity on crypto laws. Furthermore, things got worse when he failed to identify what Ether was during a House Financial Services Committee hearing.
Crypto Community Responds with Memes
In response to these controversies, members of the crypto community have retaliated by creating memes about Gensler that compare him to Charles Montgomery Burns from The Simpsons show due to their physical resemblance and similar inner workings. This is meant to poke fun at how Gensler has systematically refused to offer clarity on crypto laws while also claiming that existing securities framework can still regulate blockchain technology.
What Exactly Is A Security?
It’s important for people in crypto industry understand what constitutes a security versus currency or other asset classes so they don’t fall into legal trouble down the line. A currency is typically defined as store of value, unit of account, and medium of exchange whereas a security is typically defined as tradable financial asset that has monetary value attached to it which means regulations are different depending on what type it is classified under .
Gensler’s Lawsuit Against Ripple
In addition to filing against Binance and Coinbase, Gensler also sued Ripple over its XRP token claiming that it was an unregistered security which stirred up tensions within investors who were expecting more clarity from SEC chief who had experience in finance for 30+ years but seemed unable provide necessary guidance when needed most .
Gensler’s Recent Proposal
On April 14th , Gensler proposed rules requiring significant trading platforms come under important regulations concerning markets & noted calling yourself a crypto platform or DeFi platform was not an excuse ignore applicable securities law .