US SEC Chairman: “All cryptocurrencies except Bitcoin” are securities

According to reports, Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said in an interview with the New York Times that almost all types of cryptocurrency transactions except Bitcoin belong to securities transactions under the jurisdiction of the SEC. These tokens are securities, because there is an intermediary group, and the public expectation is based on the group’s profits. Behind these cryptocurrencies, some people use various complex and legally opaque mechanisms, But at the most basic level, they are trying to promote their Token and attract investors. Because of its unique history and creation story, Bitcoin is fundamentally different from other encryption projects in this respect.

Interpretation of this information:

In a recent interview with the New York Times, Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), stated that almost all types of cryptocurrency transactions, except Bitcoin, are considered securities transactions under the SEC’s jurisdiction. This is because these tokens have an intermediary group that investors rely on for profit, making them fall under the SEC’s purview. These tokens are often promoted using various opaque mechanisms to attract investors.

Gensler’s statement reinforces the SEC’s previous views on cryptocurrencies. He highlights the need for regulators to impose robust regulations on cryptocurrency transactions, as most cryptocurrencies are based on the tokens that are considered securities. In other words, the SEC is basically classifying these tokens as investment contracts that are bought and sold in expectation of profit based on the product or project’s performance.

One question that arises is the impact of this classification on the cryptocurrency market. This may lead to certain cryptocurrencies being removed from several cryptocurrency exchanges as they fail to meet the regulatory restrictions. Additionally, the need for increased oversight and transparency in cryptocurrency investments may make it difficult for some tokens to attract investors.

However, Gensler clarifies that Bitcoin is treated differently from other cryptocurrencies due to its unique creation story and history. Its decentralized ledger system makes it less reliant on intermediaries and less susceptible to manipulation. Hence, Bitcoin is fundamentally different from other tokens and is unlikely to be so easily classified as a security.

In conclusion, Gensler’s statement further emphasizes the need for regulators to take a closer look at cryptocurrencies and their growing influence in the financial world. The SEC is seeking to create more stringent regulations governing cryptocurrency transactions, and this statement has made it clear that most cryptocurrencies will be considered securities. At the same time, the uniqueness of Bitcoin’s structure makes it stand out among its peers, and its position as a commodity may be further reinforced in the future.