In a speech yesterday, SEC Chair Gary Gensler stated his views on regulating cryptocurrency exchanges. He believes exchanges need to separate roles, such as acting as a broker versus custodian into separate entities. He also suggested some stablecoins are securities.
Gensler started off by reiterating his stance that the vast majority of cryptocurrencies are security tokens. However, he conceded that the small number that are not securities represent a significant proportion of cryptocurrency value. He only specifically mentioned Bitcoin, although an SEC Commissioner previously stated that Ethereum was in that category. He pushed back about requests for greater SEC guidance, saying the SEC’s stance has been consistent.
The SEC Chair also asserted that some stablecoins might be shares of a money market fund or another kind of security. He gave non-exhaustive criteria for classifying them as based on:
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