In a recent interview with New York Magazine, the Chair of SEC Gary Gensler stated that “everything other [cryptocurrency] than Bitcoin” is likely a security. Gensler’s claims are based on the fact that other crypto projects are usually owned and run by a team who owns a portion of the project’s native currency. He says that most cryptocurrency projects other than Bitcoin are typically promoted and marketed by their teams to attract investors; similar to a company. He also implies that it is unfair to use the advantages of companies while running projects that issue tokens that “aren’t securities” according to their websites.
“Everything other than Bitcoin… these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.”
Gary Gensler, Chair of the SEC
The cryptocurrency community was not happy about Gensler’s statements. Some of the most credible legal experts when it comes to the crypto industry fired back at Gensler through Twitter. Some of the most notable “counterattacks” were done from Logan Bolinger, Jason Brett, Alexander Grieve, and Jake Chervinsky.
Crypto Lawyers Respond To Gary Gensler’s Statements
Author of Think Bitcoin and contributor of Bitcoin Magazine Logan Bolinger had his take on Gensler’s claims. Bolinger’s tweet serves as a reminder that Gary Gensler’s opinions on what constitutes a security are not legally dispositive. According to him, it is up to the courts, not the SEC chair, to determine what the law means and how it applies to the crypto industry. Additionally, Bolinger acknowledges that the thoughts of Gary Gensler are not irrelevant considering his expertise and position. However, he emphasizes that they should not be taken as the final word on the matter.
Moving on, we have Jason Brett’s tweet regarding the situation. For your information, Brett is the policy lead at advocacy at Bitcoin Policy Institute. Brett believes that there are better ways to regulate the crypto industry without creating a “regulatory moat.” Furthermore, he warns that relying on such an approach could backfire and result in legal challenges. “It is a huge mistake to celebrate this” quoted Brett on top of Bitcoin Magazine’s tweet regarding Gensler’s statement.
To wrap it up, Jake Chervinsky, the Chief Policy Officer at Blockchain ASSN, claimed that Gensler’s opinion is not the law. Additionally, Chervinsky says that the SEC cannot take any decision on this case. He points out that the SEC lacks the authority to regulate any asset until it proves its case in court. Moreover, he stresses that every asset should be evaluated on a one-by-one basis.