Gary Gensler of The SEC Will Be Adamant About Crypto Enforcement In A Senate Hearing

Gensler is standing by his positions at the Senate Banking Committee meeting despite the fact that his organization has suffered numerous legal setbacks.

Source: www.protocol.com

Gary Gensler, the chairman of the United States Securities and Exchange Commission, seemed unmoved by the recent string of legal failures. Gensler intends to inform Congress of this on Sept. 12 and continues to be adamant that his organization should be in charge of crypto.  The securities regulator has suffered a significant setback after losing out to both Ripple and Grayscale in the previous two months. However, Gensler will restate his belief that crypto assets are in reality commodities and must be governed by his agency in his written comments for the Senate Banking Committee hearing. The SEC's oversight of specific issues will be discussed during the Senate hearing. 

It's not unexpected that there have been many issues in these markets given the industry's widespread violation of securities regulations. This story has been told before. Gensler's prepared testimony said It's evocative of what we witnessed in the 1920s before the national securities legislation was established. Gensler continued his theme by claiming that nearly every crypto asset passes the Howey Test, which is a legal standard used to establish the validity of a good or trade qualifies as a security.

Given that the majority of cryptocurrency tokens are governed by securities regulations, Gensler continued, it follows that the majority of cryptocurrency intermediaries must also abide by securities laws. On July 13, after largely siding with Ripple, Judge Analisa Torres delivered the SEC's first significant legal setback. Judge Torres determined that the retail consumer sales of XRP tokens did not break any federal securities laws. It's anticipated that numerous additional digital currency businesses facing suits against regulators would mention this decision in their separate dismissal motions, even though the SEC is now seeking reconsideration of this ruling.

Lawyer For Ripple Says Fresh SEC Filing ‘Hypocritical Pivot’

The SEC lost a significant amount of money to Grayscale on August 29 as a result of the earlier denial of its request to turn their prescription Bitcoin Trust into a Bitcoin exchange traded fund (ETF). The judge stated unequivocally that the SEC's denial of Grayscale's motion was arbitrary and capricious. These prominent losses seem to have motivated blockchain-based payments system LBRY, which was convicted of breaking securities rules in July, to launch an appeal.

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