SEC Chairman Gary Gensler: Many cryptocurrencies are securities

In April this year, the U.S. Securities and Exchange Commission (SEC), which has long suppressed cryptocurrency, issued Wells Notices to relevant entities in the crypto field three times. Including Consensys, the parent company of the cryptocurrency wallet Metamask, the well-known DeFi project Uniswap, and Robinhood Crypto (RHC), a subsidiary of the US online broker Robinhood, the regulatory pressure faced by the encryption industry seems to be increasingly serious.

Note: A Wells Notice usually refers to a notice issued to an individual or company after the SEC investigation is completed, indicating that the SEC believes that they may have violated securities laws. After submitting the notice, the SEC has six months to decide whether to file a complaint and take enforcement actions. Companies that receive notices from the SEC also have the right to respond.

Gary Gensler: Many cryptocurrencies are securities

Against this background, SEC Chairman Gary Gensler once again reiterated his hardline views when attending the CNBC Squawk Box program on Tuesday (7): In the field of cryptocurrency , according to relevant interpretations by the U.S. Supreme Court, many cryptocurrencies are securities in the legal sense. Therefore, we should obey the law. I would say the fundamental question for me is how to ensure that American investors are protected. However, cryptocurrency investors do not receive the necessary disclosures regarding these assets.

But when Gensler was asked whether Ethereum was classified as a security? He still did not give a clear answer and continued to make unclear accounts.

SEC claims that 11 tokens including SOL are securities

In addition to Ethereum, the SEC has also repeatedly accused cryptocurrencies of "belonging to securities." As early as November last year, when the SEC filed a lawsuit against the cryptocurrency exchange Kraken, as part of the lawsuit, the SEC stated that 11 cryptocurrencies, including: SOL, ADA, MATIC, NEAR, ATOM... etc., are all securities: Kraken can currently be used to trade crypto assets, but these assets were the subject of previous SEC enforcement and they were determined to be securities.

The market continues to rise after short-term fluctuations

Although the SEC’s suppression of cryptocurrencies may have an adverse impact on token prices in the short term, according to CoinGecko data, it has been named by the SEC before The performance of cryptocurrencies as securities from last year to this year has not disappointed investors.

Take the well-known public chain Solana as an example. As SOL, which once plummeted due to the crisis of the bankrupt exchange FTX, has come from the bear market and relied on its ecological development. Since the beginning of May last year, the currency has The price has surged from US$22 to US$155, an increase of 700%.

In addition, the currency circle media "CoinDesk" also previously reported that after the SEC named it again and again, traders no longer seem to use it as an investment criterion, because traders seem to pay more attention to the area where the token is located. Blockchain’s technical capabilities, not regulatory compliance: Or they’ve figured out that the SEC isn’t the only regulator on the planet.

However, if the SEC really once again clearly states that these tokens are securities or have illegal activities, it is likely to still cause currency price fluctuations. For example, when the SEC issued a Wells Notice to Uniswap in early April, UNI experienced a price plunge and investors were asked to be cautious.

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