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Gensler Maintains Most Tokens Are Securities

SEC Chair Gary Gensler doubles down on his crypto securities stance
David C David C May 23, 20241 min read
Gensler Maintains Most Tokens Are Securities

SEC Chair Gary Gensler just reaffirmed his stance that most cryptocurrencies qualify as securities based on the Supreme Court's Howey Test. The remarks come as the crypto community anticipates the SEC's decision on spot ether ETFs, expected later today.

What's the scoop?

  • In his new comments, Gensler reiterated his view that most of the existing "15,000-20,000" crypto tokens do not operate as currency and often have a group of entrepreneurs behind them, making them fit America's definition of a security.
  • "It's just a field where the token operators, without prejudging any one of them, aren't making the disclosures that investors really could benefit from and are required by law," the SEC Chair said.

Bankless take:

Despite Gensler's steadfast position, the crypto regulatory environment appears to be thawing across bipartisan lines in the U.S.

via X

Earlier this week, the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which Gensler criticized for undermining existing securities regulations. The Senate also recently voted to repeal an SEC crypto accounting rule.

Additionally, Ethereum ETFs seem poised for approval, and this greenlighting could be a turning point in actualizing a more favorable regulatory climate for crypto in America, regardless of what Gensler personally thinks. Could a DOGE or SOL ETF be coming, then? Only time will tell, but the possibilities seem in play now more than ever.

David C

Written by David C

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David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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