U.S. Securities and Exchange Commission (SEC) Chairman, Gary Gensler, has voiced his concerns over the promotion of cryptocurrencies, indicating that Ethereum may be subjected to enhanced regulatory oversight.
In a recent interview with TheBlock, Gensler emphasized that the primary objective of the SEC is to ensure that cryptocurrency companies and users adhere to securities laws.
He stated that if cryptocurrency holders expect to make a profit based on another company’s efforts, it is a clear indication of a security.
Gensler also pointed out that crypto asset operators typically have websites, software updaters, and public relations officers with Twitter accounts.
These companies hire lawyers, lobby their interests, and even meet with members of Congress and the SEC.
Therefore, it is illogical to assume that there is no common group of cryptocurrency promoters, as they are already present everywhere.
When questioned about the conflicting views of different departments regarding the regulation of ether, Gensler replied that ether falls under the area of regulation that already has clarity.
However, the cryptocurrency industry is mistakenly trying to ignore it.
He stated that securities laws have proven to be effective over time, and the crypto industry would be better off adapting to them.
It is worth noting that the regulator recently filed a lawsuit against the Bittrex cryptocurrency exchange, categorizing crypto assets such as OMG, DASH, ALGO, TKN, NGC, and IHT as securities.
In March, New York Attorney General Letitia James classified ETH, LUNA, and UST coins as securities, accusing the KuCoin exchange of lacking registration.