The regulatory landscape in the United States is complex. While a comprehensive framework is slowly but surely being developed, enforcement remains with the various authorities. Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), calls for jurisdiction over most of the cryptocurrency industry.
Ago Executive Order of the President of the United States In March 2022, regulating the cryptocurrency industry is steadily creeping up the list of priorities. The next framework builds on existing authorities and aims to improve consumer protection define the priorities. At the forefront is the US Securities and Exchange Commission (SEC), chaired by ex-Goldman Sachs investment banker Gary Gensler, which aims to capture decision-making power over the majority of regulations governing the issuance and trading of cryptocurrencies.
Jurisdiction over all Ethereum-based tokens
In a civil lawsuit against crypto influencer Ian Palina hidden, allows the US Securities and Exchange Commission to take a deep look. Gary Gensler feels responsible for organizing the entire decentralized network as all transactions take place in the United States. Buried under Section 69 of the 23-page indictment against the influencer, it lists the validation of the Ethereum blockchain and claims that Contract– Density in the United States that transactions are actually settled on US soil.
US-based investors in the Balina pool are irrevocably committed to the transaction when they send their ETH contributions to the Balina pool from the US. At this point, their ETH contributions have been validated by a network of nodes on the Ethereum blockchain, which is densely concentrated. in the United States more than in any other country. As a result, these transactions took place in the United States.” A civil complaint from the Saudi Electricity Company
In this bold and unprecedented move, the US Securities and Exchange Commission is arguing that the entire Ethereum network falls under the jurisdiction of the agency. Doubtful point of view – not to mention the fact that at that time less than a third of all nodes in the United States Puts. It’s generic a favourThat Gensler wants to secure control of most of the crypto sector by various means.
Disagreement between US regulators
The question of whether digital assets should be considered as securities is at the center of the discussion. Finally, securities come under the jurisdiction of the SEC, and commodity trading is supervised by the Commodity Futures Trading Commission (CFTC). Using the version introduced in 1933 Howey tests For his part, Gensler argues that “nearly all cryptocurrencies” are classified as securities ought to. This contrasts with the position of the CFTC, which has also expressed itself in charge of the area.
This battle was fueled in late 2020 when the Securities and Exchange Commission seized Ripple Labs – the cryptocurrency issuer. XRP To sell unregistered securities Accused. However, the fact that the legal dispute has yet to be resolved shows how complex the matter is. An acquittal of Ripple’s board would lead to a backlash for regulator Gensler.
Is ether also safe?
The only exception is Gensler’s point of view is bitcoin – It was also recognized as “raw material” due to sufficient decentralization. The second largest cryptocurrency by market cap, ether (ETH), on the other hand, can also convert into an unregistered security. After the successful transition of the blockchain to Proof of Stake (Also known as consolidation), the head of the SEC expressed new concerns. Users can now earn return by staking, Aether conversion Any potential investment contract.
The situation is similar in the field of decentralized financial applications (DeFi) Outside. Over 100 Ethereum-based tokens were traded from the Uniswap trading protocol interface last July. far, where cryptocurrencies can embody securities. same topic kindle Coinbase and regulators had a dispute a few months ago when the largest cryptocurrency exchange in the US was accused of listing the securities. Without clear guidance from the SEC, this is unlikely to be the last controversy on the subject.