Following the release of the statement from Gary Gensler, chairman of the American Securities and Exchange Commission (SEC), the Bitcoin and altcoin community is arguing that the regulator could shut down all crypto exchanges (except possibly those offering Bitcoin (BTC) and Ethereum (ETH)) unless they register. Cryptocoin. com we examine the comments of the leaders of the community on this issue…
Gens: Bitcoin and the altcoin class are rife with fraud and abuse
Gensler will appear before the U.S. Senate Banking, Housing, and Urban Affairs Committee today, before which his testimony is expected to be made public. “Obviously, right now [crypto] is more like the Wild West, or the old, all-risk world that existed before the securities laws came into effect,” Gensler said. “This asset class is rife with fraud and abuse in certain apps.”
There are a number of projects that the SEC is eyeing to protect investors in the crypto market. These include crypto trading and lending platforms, crypto offering and selling, custody, investment vehicles that invest in crypto assets/crypto derivatives, and “stablecoins”. Many platforms have lots of tokens on them, and “with 50, 100 or 1,000 tokens, the probability of any platform not having any securities at all is pretty remote,” Gensler said.
You can be sure: to the extent that there are securities on these trading platforms, they must register with the Commission unless they qualify for exemption under our law.
Attorney: Exchanges will only be able to list Bitcoin and ETH with ease
Regarding this and a broader set of policy frameworks, Gensler said the SEC’s; He said he was working with the Commodity Futures Trading Commission (CFTC), the Federal Reserve, the U.S. Treasury, the Office of the Currency Denedollarseme and others. The cryptocurrency community has so far viewed these statements as threatening to cryptocurrency exchanges in the US. “I don’t think markets fully understand the implications of Gensler’s statement,” said Arturo Portilla, a tax and fintech lawyer.
There are only 2 cryptos that US exchanges can feel comfortable with: BTC and ETH. Listing ANY other crypto may imply the exchange’s requirement to register with the SEC.
Other commenters have also attributed Gensler’s comments to the fact that the regulator is targeting altcoins and “shitcoins”. Some commentators argue that many altcoins are indeed scams or securities, and the SEC would be right to address them. Meanwhile, crypto trader and st Alex Krüger argued that technology and regulations need to adapt.
The phrase “coin tied to a stable value” has confused the Bitcoin and altcoin community
While some wondered whether the markets would really react to a US regulator’s decision, others argued that the coins could be listed from another country. However, there are those who think that many other countries can follow the example of the USA.
Another thing that catches the eye of the cryptocurrency space is “stablecoins,” or “coins with a stable value,” as Gensler puts it. Some say it could also be a way towards heavy crypto exchange regulation, as well as a way to control the narrative.
Crypto Law Review, in a tweet, stated that “whoever came up with the phrase “coins tied to a stable value should get a raise, then resign and come to the crypto space.” Not only are they talking about ‘stable’ coins that have been fixed on fiat, they’re also aiming for the grand prize: a commodity-backed, fully deniable crypto. How do they control the narrative?