SEC Chairman Gary Gensler spoke before the House Financial Services Committee.
In the session that began with the senators’ introductory speech, Patrick McHenry, chairman of the House Financial Services Committee, criticized the SEC and chairman Gensler for not providing sufficient regulatory clarity on cryptocurrencies and choosing to regulate the industry through sanctions.
Here are the highlights of Gensler’s speech:
“You shouldn’t take the 1-SEC rules lightly.
2-The technology that I think has transformed our time is not cryptocurrencies, which we are discussing here today, but artificial intelligence technology.
3-Cryptocurrencies have to comply with the same laws as stock markets.
4-Gensler replenished his usual cryptocurrency stance, saying that the vast majority of crypto assets are securities, so platforms that offer cryptocurrency trading services must comply with commission rules.
5-We have the necessary laws to protect cryptocurrency investors. We are in contact with the stock market and project owners on this issue.”
Asked by the chairman of the committee whether an asset is both a security and a commodity, Gensler replied, “Actually, all securities are commodities under the CFTC law. That’s why we exclude commodities.” said.
To the President’s specific question about whether Ethereum (ETH) is a commodity, the SEC Chairman was unable to give a clear answer.
To Gensler Ethereum question, “I’m answering generally because you don’t want me to talk about any particular product or condition. “He left the question unanswered.
Speaking about the illegality of cryptocurrencies, Gensler said, “I have been involved in finance for more than 40 years, and I have never seen such an area that violates the laws written by congress and approved by the courts.” said.
The chairman of the committee said that there is uncertainty about whether cryptocurrencies are securities or commodities.
Gensler replied, “I think the law is clear and unequivocal.”
The chairman of the committee said, “The market does not see it. The purpose of this committee is to remove this ambiguity and actually provide a legal basis.”
I want to give you extra time to answer a question from a senator’s Committee chair, can you explain how you define something as a security? Replying to the question, Gensler said, “There are more than 30 requirements for Congress to determine whether something is a security, one of which is investment contracts. ”
Speaking about stablecoins, Gensler said, “The most important thing about stablecoins is that they are reliable, stablecoins are currently in active use. We want stablecoins to be included in the ecosystem,” he said.