U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently addressed concerns about the need for additional legislation regarding cryptocurrencies.
According to Gensler, the existing securities laws already cover much of the activity that occurs in cryptocurrency markets.
He added that the introduction of new rules could lead to unintended consequences, including conflicts and a potential undermining of regulatory authority.
Gensler reiterated his view that most cryptocurrencies are securities and suggested that foreign entities selling digital assets to U.S. investors should be subject to securities law.
“If you’re selling tokens to U.S. investors, then you are subject to either securities laws or Commodity Futures Trading Commission (CFTC) laws,” Gensler explained.
While he declined to comment on any potential action against Binance, Gensler did note that the SEC had already filed lawsuits against other exchanges.
In a separate move, the CFTC recently filed a civil lawsuit against Binance, alleging violations of U.S. commodity laws and accusations of complicity in circumventing user identification procedures and potentially laundering illegal funds.
Following the lawsuit, Binance saw approximately $1 billion in withdrawals from its platform.