- Gensler told his students this during a course at MIT
- The current chairman of the SEC categorized three-quarters of the crypto-asset market as commodities and fiat
In 2018, Professor Gary Gensler taught a course for MIT students called “Blockchain and Money”.
During one of the lectures, the current chairman of the Securities and Exchange Commission (SEC) openly stated that most cryptocurrencies are not securities.
Video recording of the lecture is available on YouTube. In it, and in the next session, Gensler touches on the topic of ICOs (initial offerings) of crypto-assets:
“So, we already know that in the United States and other jurisdictions, three-quarters of the market is not an ICO or what we might call securities.
This can also be seen in Canada and Taiwan, where the “Howie test” is applied. So, three-quarters of the market is not securities. It’s just goods or cash.”
Section with this particular thesis can be seen here. The news itself and the hype surrounding the video sparked a lively reaction from the cryptocurrency community.
CEO Coinbase responded with a short “Wow”. Recall that the exchange received a “letter of happiness” from the regulator back in March.
Founder of the cryptocurrency trading platform ShapeShift Eric Voorhees asked when “someone” will be arrested for fraud. The head of the Web 3 Rug Radio project even called Gensler “disgusting.”
No comment has yet been made by either the SEC or its chairman.. Although Gensler’s answer in such a case seems obvious.
Surely he will refer to the fact that times are changing, and with them the approach to regulating the industry.