Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has said during a hearing in the The United States House Committee on Appropriations that crypto firms should be regulated in accordance with securities laws.
According to him:
"The regulations actually already exist, sir. They’re called the securities regulation, and so there are disclosure regulations for when somebody tries to raise money from the public."
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Sanford Bishop, a member of the US House of Representatives, has asked Gensler about the Commission's willingness to issue "a rule to clarify how securities laws apply to digital assets."
In response, the SEC chairman has replied the regulation mentioned by the congressman does not require clarification. The market has investor protection rules, but the industry is "rife with noncompliance."
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Gensler has reiterated his thesis that the vast majority of digital assets, with the exception of Bitcoin, fall under the definition of securities.