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SEC Chairman on the Classification of Cryptocurrencies as Securities

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According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all type…

SEC Chairman on the Classification of Cryptocurrencies as Securities

According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all types of cryptocurrency transactions except Bitcoin belong to securities transactions under the jurisdiction of the SEC. These tokens are securities, because there is an intermediary group, and the public expectation is based on the group’s profits. Behind these cryptocurrencies, some people use various complex and legally opaque mechanisms, But at the most basic level, they are trying to promote their Token and attract investors. Because of its unique history and creation story, Bitcoin is fundamentally different from other encryption projects in this respect.

US SEC Chairman: “All cryptocurrencies except Bitcoin” are securities

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In a recent interview with the New York Times, Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), revealed that almost all cryptocurrency transactions, with the exception of Bitcoin, should be classified as securities transactions under the SEC jurisdiction. This new development has far-reaching implications on the regulation of cryptocurrencies, particularly on the regulatory framework of various cryptocurrency projects.

According to Gensler, cryptocurrencies other than Bitcoin are securities because they have an intermediary group, and public expectation is based on the group’s profits. This is in contrast to Bitcoin, which has a unique history and creation story that fundamentally differentiates it from other cryptocurrency projects. Behind the various cryptocurrencies, people use complex and legally opaque mechanisms to promote their token and attract investors. However, at the most basic level, these tokens are securities that promise profits to investors.

The SEC classification of cryptocurrencies as securities means that cryptocurrency projects will be subject to more stringent regulations, including registration with the SEC and compliance with SEC rules on disclosure and investor protection. This means that cryptocurrency projects will have to provide more transparent information to investors on their operations, financial condition, and risk factors. The new regulations may also affect the secondary market for cryptocurrencies, as trading platforms and exchanges may be required to register with the SEC.

In conclusion, the recent statement by SEC Chairman Gary Gensler is a significant development in the regulation of cryptocurrencies. The SEC’s classification of almost all cryptocurrency transactions, except Bitcoin, as securities transactions means that cryptocurrency projects will be subject to more stringent regulations to protect investors. This development highlights the need for greater transparency and accountability in the cryptocurrency industry to promote investor confidence and protect investors from fraudulent activities.

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