The cryptocurrency sector is growing in leaps and bounds. Even banks are getting in on the act – they certainly know where the money is. However, the SEC, headed up by Gary Gensler, keep referring to “clear” guidelines as to what constitutes a security. These guidelines are anything but clear.
Gary Gensler was summoned to Capitol Hill yesterday to a hearing on systemic risk and oversight. His main theme appeared to be to “protect investors”, once more echoing his “wild west of crypto” slogan.
However, when pressed by some senators as to opaque definitions and huge market uncertainty, not enough was forthcoming from Gensler.
Questioned on CNBC, Squawk Box, Kavita Gupta, founder of Delta Blockchain Fund talked about the confusion over whether we should be trading, or whether this is a security or not. She said:
“Why are we not saying this is the regulation, this is how it should be treated. Nobody in the space is saying “Hey we don’t want to follow, or we are going to be having an issue following – we want to.”
According to Perianne Boring, Chamber of Digital Commerce founder and president, predictable and clear guidance is what is needed. She disagrees totally with Gensler’s view that the law is clear.
“We represent over 200 businesses that are innovating with digital assets at the Chamber of Digital Commerce, and I have yet to have one company say: “Yeah, we understand what the rules to the road are.”
She added that the Chamber of Digital Commerce also represented around 40 different law firms that even contained former SEC officials. All of them were unanimous that the law was not clear.
Boring said that crypto was the fastest and most innovative industry out there, but that the present regulatory stance was driving much of this innovation overseas.
“it’s not just me who is saying this. Commissioner Pierce, who’s also an SEC commissioner has stated this over and over again. She’s put forward a safe harbour for digital tokens. The SEC has not taken it up for rule-making. We urge them to do that.”
She continues that there are about 30 members of congress, who over the last four years have sponsored or co-sponsored legislation aimed at remedying the situation.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.