Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), admitted he had asked the SEC staff to prioritize crypto compliance.
Gensler has asked all employees to check for crypto compliance.
The head of the United States Securities and Exchange Commission mentioned the importance of crypto regulations and compliance. Gensler made the comment last Thursday at a conference between the Practicing Law Institute and the Securities and Exchange Commission.
The head of the Securities and Exchange Commission made an emphatic statement on the topic of whether or not crypto assets are securities. He estimates that the vast majority (around 10,000) of the assets are securities. In addition, “the offers and sales of these tokens are subject to the securities law.”
Contrary to popular belief, not all crypto assets meet the criteria to be classified as securities, as Gensler pointed out. Nevertheless, they only account for a small percentage of the total crypto assets, which could be quite valuable when added together.
The SEC chairman used Bitcoin, which he had previously classified as a commodity, as an example. Bitcoin is a commodity, so its regulation and oversight is the responsibility of the CFTC.
Additionally, Bitcoin is the first decentralized digital currency, so it is often referred to as “digital gold.”
Gensler claims there has been a demand for extensive “guidance” for the crypto sector. The head of the Securities and Exchange Commission has said that the agency has been using a more straightforward and understandable tone in recent years.
The SEC has taken the lead in monitoring virtual asset service providers for compliance with the law. He disclosed that safeguarding investors is central to the SEC’s role in enforcing regulations.
This led to the revelation by Gensler that he had requested agency personnel work together with token issuers. In this way, they can rest assured that their holdings will be properly classified as securities.
SEC Unveiled New Offices to Manage Crypto Issuer Filings
It has been reported that the regulatory body has expanded to include new offices specifically to manage the crypto issuer filings department. There are now nine offices total that process filings from crypto industry issuers, with two of those new additions.
One of the new locations, however, will help the SEC deal with the growing number of applications from cryptocurrency issuers in the United States.
These new departments are known as the Office of Crypto Assets and the Office of Industrial Applications and Services, respectively.
According to the SEC, all digital currency issuer filings will be examined by the Office of Crypto Assets. Other than pharmaceuticals, medical devices, and biotechnology, the products in this category will be managed by the Office of Industrial Applications and Services.
The SEC is seeking a tailored approach to cryptocurrency regulation due to the industry’s rapid expansion.
The SEC, like other regulators, has stepped up its enforcement of compliance among cryptocurrency exchanges.
The commission has proven that it is willing to go above and beyond to enforce the law. Gensler is spearheading this shift, and they have no plans to stop anytime soon.
