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According to SEC's Gary Gensler, all cryptos are securities — with one exception

Gary Gensler, chair of the U.S. Securities and Exchange Commission, says all cryptocurrencies should be classified as securities.

By Finst News
• 2 min read
According to SEC's Gary Gensler, all cryptos are securities — with one exception

Gary Gensler, chair of the U.S. Securities and Exchange Commission, says all cryptocurrencies should be classified as securities. Only Bitcoin is the exception.

In an interview with New York Magazine on February 23, the SEC chief says that all cryptocurrencies "except Bitcoin" fall under the jurisdiction of the Financial Services Authority. This means that, according to Gensler, all crypto tokens—except Bitcoin—should be treated as securities. Securities are tradable rights and/or obligations that carry financial value, such as stocks, bonds, options, and futures.

"In short," said Gary Gensler, "these tokens are securities because there’s a middleman group and the public expects profits based on that group."

Bitcoin, he noted, has a special position because the network is characterized by a truly decentralized organization. Other projects operate under a foundation or similar centralized actors. In those cases, investors are drawn in with profit expectations.

Meanwhile the SEC remains on a tight regulatory course for crypto. After the crypto exchange Kraken started this month to shut down its staking program and pay a fine, POS blockchains are worried about further action from U.S. authorities.

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