SEC Chairman Gary Gensler said in a recent interview that the SEC is still after Ripple and will prosecute any altcoin project that is an unregistered security. As Kriptokoin.com, we provide the details…
“SEC will not back down in its case with altcoin”
In a recent interview, Gary Gensler, BlockFi, Super Bowl ads infestation by crypto exchanges, Ripple, Ethereum Discussed the overall market including Bitcoin spot ETFs and more. According to Gensler, the SEC will continue to crack down on any crypto it considers an unregistered security. In the interview, on what makes one crypto safe and what doesn’t, he said:
The conceptual framework is: ‘Does public investment money expect to profit from the efforts of others?’ […] My predecessor Jay Clayton said this as well as I can tell, given these cryptocurrencies, these tokens are rare to find. The public invests in the hope of a profit based on the efforts of another group.
Server Liz objected to why it’s only going on XRP when both cryptocurrencies Ethereum and Ripple only sell tokens. Gensler avoided answering this question directly.
BlockFi settlement and spot ETF rejection
A few days ago, the SEC fined BlockFi $100 million as part of a deal to market unregistered securities products with its interest-bearing accounts. Crypto debt protocol will no longer be able to open new accounts in the US. According to Gensler, the deal was crucial in the SEC’s fight against platforms that fail to provide effective investor protections against fraud and manipulation. For example, BlockFi broke two different securities laws:
But we cooperate with them. We’re trying to see if we can put this whole region – these crypto exchanges and lending platforms – in an investor protection envelope and then let the public decide whether to invest or speculate.
Gensler also touched on Bitcoin spot ETFs, a product that the SEC refused to authorize. Applications for Fidelity, SkyBridge, Kryptoin, VanEck and WisdomTree were rejected. In its latest move, Grayscale has opened up to public feedback on its Bitcoin spot ETF implementation, despite 95% of investors backing Grayscale. He claims that the underlying Bitcoin cash market currently lacks an investor protection structure. Unlike Bitcoin futures ETFs, which are traded on the Chicago Mercantile Exchange and regulated by the CFTC, Bitcoin futures ETFs are traded on the Chicago Mercantile Exchange.
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