The crazy regulator finally regulated? – If you have been following the news of the cryptosphere in recent months, there is no need to remind you that the Securities and Exchange Commission (DRY) declared a open war against Bitcoin (BTC) and cryptocurrencies. The president of this regulatory institution, Gary Genslerrecently found himself crestfallen to justify this virulent animosity in front of the members of the US Congress. It was in particular unable to answer to the simple question below on Ethereum (ETH).
Is, yes or no, Ethereum classifiable as security (security)?
This Tuesday, April 18, 2023, Gary Genslerthe chairman of the SEC, had to testify before the Financial Services Committee of the House of Representatives (House of Representatives) of the United States – the equivalent of the French National Assembly.
And if the leader of the Securities and Exchange Commission is a fierce opponent of the cryptosphere, it must still be admitted that the poor man has been scolded like a bad student who no longer knew where to sit. From the opening of this “interrogation”Gary Gensler must have had an awkward moment when the Republican Patrick McHenryChairman of this Congressional Committee, reminded him of the following facts:
” [La SEC et vous avez pris] nearly 50 separate enforcement actions against digital asset firms [depuis le début de l’année]. (…) At the same time, you refused to elaborate on whether digital assets offered under an investment contract are subject to securities laws and, more importantly, how these companies must comply with these laws. (…) It is clear that an asset cannot be both a commodity (commodity) and a security (security). (…) I ask you, sitting in your chair, to assess, within the framework of existing laws, whether Ether [d’Ethereum] is a commodity or security. »
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Gary Gensler: one of the greatest gossip numbers in history
Of course, given that after 2 ½ years procedures against Ripple and its XRP (SEC complaint launched in December 2020), the regulator was unable to demonstrate that it was a security. So imagine for Ethereum which is still a more decentralized network!
But even in this situation Gary Gensler responded with cheek: “clarity is there, the law is clear and explicit”. Indeed, the clarity is so there that the SEC and the CFTC (Commodity Futures Trading Commission) attack cryptos both on their side claiming, for the first time, that they are securitiesand for the second, that they are commodities. A laughable circus if it were not very serious for players in the cryptocurrency sector.
Tom EmmerRepublican representative from Minnesota, does not go out of his way on this subject and criticizes the SEC for having made unlivable the operation and development of crypto-companies to USA :
“Your style of regulation lacks flexibility and nuance. And as a result you were a policeman [financier] incompetent in the field. »
This translates concretely, since crypto companies, like Bittrex or like Nexodecided to stop to serve the UNITED STATES and its vague and hostile regulations towards digital assets. If the SEC and Gary Gensler are not arrested, the USA will become a crypto hell who will end scare industry players.
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