Gary Gensler, who was newly appointed chairman of the SEC (US Securities and Exchange Commission) on April 17, said that many cryptocurrencies are securities.
On the other hand, Bitcoin, which is not a security by the SEC, needs to be regulated to protect investors.
Many cryptocurrencies are securities
In an interview with CNBC, Gary Gensler, who took office as SEC chairman, considers many cryptocurrencies currently on the market to be securities.
Previously a lecturer on blockchain and financial technology at the Massachusetts Institute of Technology, he believes he needs regulatory authority to oversee crypto exchanges as well as stock markets and is under the jurisdiction of the SEC. It states that it should be placed in.
As long as it is a securities, the SEC has a lot of powers.
And many crypto tokens are currently securities, not cryptocurrencies.
Bitcoin, on the other hand, recognizes its appeal to traders, but says it needs regulation to prevent fraud and other issues.
It’s a digital, rare and valuable way of storing value, but it’s extremely volatile.
Bitcoin investors take advantage of their volatility and, in some cases, their low correlation with other markets.
Therefore, we believe that we need to strengthen the protection of investors.
Investors are paying attention to the Ripple (XRP) litigation issue as a securities issue. I would like to pay attention to what kind of attitude he hopes for this proceeding in the future. Also, as he said, “Many tokens are securities,” it should be noted that problems such as the Ripple proceedings may occur in other cryptocurrencies in the future.
On the other hand, as for Bitcoin, it mentions investor protection, so I hope that the legislation will be improved, the investment environment will improve, and the value of Bitcoin will further increase.