SEC Chairman Gensler Takes an Aggressive Stance on Tokens – Blockchain News, Opinion, TV, and Jobs
By Marcus Sotiriou, Market Analyst at a publicly listed digital asset broker GlobalBlock (TSXV:BLOCKS).
Bitcoin fell below $23,000 over the weekend, after Opinion of SEC Chairman Gary Gensler where tokens are securities in digital asset trading is made clear. He told New York Magazine, “Everything but bitcoin. You may find a website, you may find a group of entrepreneurs, they may set up their legal entity in an offshore tax haven, they may have a foundation, they may court it to try to mediate and complicate jurisdiction or so on. .” It concludes that although crypto founders may use various legal methods to protect themselves, they still fall under securities laws.
If we look at the total number of tokens that Gensler says needs to be registered with the SEC in the digital asset trading market, the number becomes larger than all of all public companies registered with the SEC, which is over 9,000.
I think we need to ask what is the capacity of the SEC to sue digital asset trading companies. If they can sue less than 500 companies, they may lose out relative to the new tokens being created. Then, you should prioritize suing certain companies over others – how can you determine this? Ultimately, Gensler’s opinion is not law, and any case brought by the SEC must be proven in court. The longer this uncertainty remains in limbo, the worse it will be for the entire industry.