The SEC Chairman Gary Gensler shared his testimony at the latest U.S Senate Banking Commitee hearing. Gensler spoke on cryptocurrency in front of the United States Senate Committee on Banking, Housing, and Urban Affairs last week.
In his testimony, Gensler says that “of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities.” As regulations continue to form under the U.S treasury and government, more representatives of the crypto community are speaking out. The SEC Chairman has been ridiculed for his leadership of the SEC.
Gensler added, “in general, the investing public is buying or selling crypto security tokens because they’re expecting profits derived from the efforts of others in a common enterprise.” According to the Supreme Court’s 1946 Howey Test, this fulfills one of the categories of a “security,” according to the SEC Chairman.
Chairman Gensler believes that many cryptocurrency intermediaries are transacting in securities. Hence, they have to register with the SEC in some capacity. He adds that he has asked staff to work with crypto intermediaries to ensure they register each of their functions.” This includes the ability to exchange, broker-dealership, and other custodial functions.
After the testimony, notable crypto voices continue to thrash Gensler and the SEC and their harsh regulations.