SEC Chairman Gary Gensler has made hints that consider Ethereum (ETH) to be a security.
According to the findings of a recent interview with the Securities and Exchange Commission (SEC). Gary Gensler, who is currently serving as the chair of the organization, is the one who communicated the feeling.
Gensler believes that there is a possibility that Ethereum (ETH) could be regarded as a security in the future. According to Gensler, the production of additional cryptocurrencies in addition to Bitcoin is not an unusual occurrence at all.
By a group of entrepreneurs who collaborate to take advantage of a wide range of clandestine procedures. This is done in an effort to raise knowledge about their tokens and interest from prospective investors.
Gensler Claims Tokens Are Securities in Every Way
Gensler claimed that these tokens are fundamentally the same as securities in every way. Due to the fact that investors are expecting to make monetary profits as a result of the activity of intermediaries.
According to Gensler, such tokens ought to be regarded as securities in a legal sense. This is due to the fact that they are regulated by the Securities and Exchange Commission.
Previous remarks that Gensler had made about Ethereum served as the inspiration for this approach. Gensler did not want to take part in the conversation in any way, shape, or form.
Regarding the prospect of Ethereum being regarded as a form of investment or security. In the year 2021, Gensler presented his ideas on the regulatory standing of stablecoins as well as other cryptocurrencies.
According to his point of view, stablecoins, often known as cryptocurrencies that are linked to a conventional currency or commodity, are preferable. The United States dollar was a part of it, hence it should be placed in the category of securities.
On the other hand, stablecoins that are backed by cryptocurrencies are not as clear to the average person. It has the potential to be classified as a commodity.
Gensler’s statements stand in stark contrast to those made by Rostin Behnam, chair of the Commodity Futures Trading Commission (CFTC). Behnam views Ethereum as a commodity in his analysis.
Behnam has reaffirmed his position a number of other times. Including when attending a conference that is scheduled for the month of October 2022. Behnam claimed that Gensler possessed a unique viewpoint in relation to a matter that was being discussed.
Potentially, Ethereum Is a Non-Regulated Security
In 2018, while Gensler was still serving as a professor at MIT, had already broached the subject of the potential. Gensler said that Ethereum might be considered non-registered security in some circumstances.
When previous cryptocurrency initiatives avoided registering with the organization that governs them. The motivation behind this is that they wish to maintain their anonymity. They are accused of engaging in something called “avoidance registration.”
The purpose of this example is to illustrate the approach of avoiding registration. It is common knowledge that the head of the SEC has a negative opinion of their measures.
By disguising one’s identity and acting as though they are someone or something else. According to his point of view, it is sad that the majority of bitcoin efforts are structured as securities.
In essence, it is an attempt to hide the fact that they are structured as securities in some capacity. Gensler thinks this is dishonest behavior on the part of the cryptocurrency projects. Gensler made the observation that this is a very typical method of doing things.
Notwithstanding the fact that there have been complaints lodged against the regulating agency. It is because they give the impression of being out of touch with the technical innovations of the present day.
Despite the fact that cryptocurrency tokens are a rather novel notion. Gensler emphasized how important it was to stay true to the initial plan, which was to ask the general people for financial contributions.
Also, it is presenting them with the knowledge that is helpful. Gensler was referring to the concept of supplying the general public with fundamental information.