In a recent speech, Gary Gensler, the chairman of the US Securities and Exchange Commission, stated that all cryptocurrencies, with the exception of the historical first, should be classified as securities. This has caused a divide within the cryptocurrency community, with some bitcoin maximalists and altcoin supporters expressing opposing views.
Michael Saylor, the co-founder of MicroStrategy, supported Gensler’s statement, stating that regulators are coming to a consensus on crypto assets. According to Saylor, bitcoin’s exemption from classification as a security makes it the only cryptocurrency that can serve as “international money”.
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John Deaton, an attorney representing XRP holders, has expressed disagreement with Michael Saylor’s recent statement supporting the SEC’s classification of cryptocurrencies as securities, except for bitcoin. Deaton claims that there is no consensus on this issue within the cryptocurrency industry or among lawyers, and that only Gensler and bitcoin maximalists share this view.
Deaton argues that program code cannot be considered a security, and accuses Saylor of using his comments to divert attention from altcoins towards bitcoin. Deaton believes that Saylor is well aware of Gensler’s mistake regarding the classification of cryptocurrencies.
Not true. Outside of @GaryGensler’s 🧠 and #BTC Maxis, there’s no consensus everything other than #Bitcoin is a security. There certainly isn’t a consensus w/in the legal community. Software code is NOT a security. It, like any other asset, can be offered and sold as a security. https://t.co/MokmwLr7Ok
— John E Deaton (@JohnEDeaton1) February 27, 2023
Jake Chervinsky, the Head of Compliance at the Blockchain Association, has recently commented on the SEC Chairman Gary Gensler’s statement regarding the classification of cryptocurrencies as securities.
Chervinsky reminded that Gensler’s opinion is not a law, and that the SEC does not have the authority to regulate cryptocurrencies as securities until it proves its case in court, separately for each crypto asset. Chervinsky expressed hope that the judiciary can help the participants of the crypto industry in their fight against regulators who often exceed their powers.
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In a recent statement, Jake Chervinsky expressed his optimism towards the judicial system and its potential role in protecting the interests of the crypto industry.
Chervinsky believes that the judiciary can provide a fair and balanced perspective in cases where regulators overstep their boundaries and impose unnecessary restrictions on the crypto industry.
He hopes that the courts will act as a neutral third-party, taking into consideration the views of all stakeholders involved, and ensure that the regulatory measures put in place are reasonable and proportionate to the potential risks involved.