Crypto lawyers accuse Gensler of allegations that all cryptocurrencies are securities

Cryptocurrency lawyers have rejected comments made by the head of the US securities regulator, who claimed in a recent interview that all cryptocurrencies except Bitcoin (BTC) are securities under its jurisdiction.

23 discussing crypto, Securities and Exchange Commission Chairman Gary Gensler stated that “everything but Bitcoin” falls within the agency’s mandate.

He added that other crypto projects “are securities because there is a group in the middle and the public is anticipating profits based on that group,” which he said is not the case for Bitcoin.

Jake Chervinsky, a lawyer and policy lead at cryptocurrency advocacy group Blockchain Association, argued, however, in a Feb. .

He added “until and unless” the SEC “proves its case in court” for its jurisdiction over each individual token “one at a time”, then it “has no authority to regulate any of them.”

Attorney Logan Bolinger also chimed in, tweeting Feb. 26 “that Gensler’s views on what is and is not a security are not legally binding” — meaning it’s not the final legal determination.

“Judges – not SEC chairmen – determine what the law means and how it applies,” added Bolinger.

Bitcoin Policy Institute policy lead Jason Brett said Gensler’s comments “should not be celebrated but feared” and stated, “there are ways to win beyond a regulatory moat.”

SEC needs 12,305 lawsuits: Delphi Labs lawyer

Meanwhile, Gabriel Shapiro, general counsel at investment firm Delphi Labs, outlined in a series of tweets the seemingly impossible imposition the SEC would have to take on the industry to consolidate its rule.

Shapiro said that over 12,300 tokens worth around $663 billion are – according to Gensler – unregistered securities that are illegal in the US and, as mentioned by Chervinsky, the agency would have to file a lawsuit against each token creator. .

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The SEC has dealt with crypto in two main ways, according to Shapiro: by fining token creators and requiring the issuer to register, or by fining them and ordering the tokens created to be destroyed and taken off exchanges.

“SEC registration is not only too expensive for most token creators – there is also no clear path for token registration,” Shapiro said, adding:

“What’s the plan here? Since registration is not feasible, it can only be (that) everyone pays huge fines, stops working on protocols, destroys all development premines and excludes (tokens) from trading. That would mean 12,305 lawsuits.”

“What’s the plan? We’re all wondering, and billions of Americans (dollars) are at risk.”