Gary Gensler, ex-chairman of the US CFTC, said that most tokens sold through ICOs should be delegated securities, Bloomberg announced on October 15.
If digital currencies are viewed as securities, they would fall under regulatory purview of the US Securities and Exchange Commission (SEC). the coin issuers would need to consent to specific laws, enlist with the SEC, and unveil particular data like a depiction of the company’s properties or financial statements.
At the point when asked whether blockchain technology should be regulated, the former CFTC chairman affirmed that “we should be technology-neutral”. He continued, stressing focusing on the need to guarantee investor protection within certain blockchain applications, for example, digital currencies. Gensler stated:
“I think that cryptocurrencies like Bitcoin (BTC) need more protection, and probably more protection than even the oil markets.”
Talking about the future growth in blockchain regulation, Gary stated that there needs to be some kind of oversight – traffic lights and speed limits – to make sure about the confidence on Crypto Roads. He thinks that the two will coexist, but it will many years to take it into account and get the perfect balance.
Gary’s words resound an announcement from Senior Advisor for Digital Assets and Innovation of SEC, Valerie A. Szczepanik, who said that “if you wish crypto industry to prosper, security of financial specialists should be at the cutting edge”.
Talking at the US SEC and CFTC senate hearing in February this year, SEC chairman, Jay Clayton, said that while each ICO token the SEC has seen by now is a security, a refinement should be made among the tokens and major digital currencies, for example, BTC and Ethereum. The meaning of ETH as a security has apparently been flawed.
In December 2017, Clayton issued an open statement, presuming that most tokens sold through ICOs are likely securities under US law. Clayton at that point noticed that the content of the exchange could easily compare to the shape in deciding whether a speculation is a security.