Member-only story
Gary Gensler’s Changing Stance on Crypto Securities
Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), has been a prominent figure in the cryptocurrency industry. In 2018, he stated that certain cryptocurrencies, such as bitcoin, ether, litecoin, and bitcoin cash, were not securities. However, his current position as SEC chair has led to ambiguity regarding whether ether qualifies as a security. This article explores Gensler’s evolving perspective on crypto securities and its implications for the industry.
Gary Gensler’s Earlier Position on Crypto Tokens
During his tenure outside the SEC, Gary Gensler expressed a clearer view on which crypto tokens should be classified as securities. He consistently argued that cryptocurrencies like bitcoin, ether, litecoin, and bitcoin cash did not meet the criteria to be deemed securities. In contrast, he believed that tokens issued through initial coin offerings (ICOs) were more likely to fall under the securities umbrella.
The Ripple and Coinbase Disputes
The distinction between securities and non-securities has become a contentious topic, with legal disputes involving major players in the crypto space, including Ripple and Coinbase. When a token is classified as a security, it is subject to more stringent…
