{"id":4468,"date":"2022-01-11T03:18:00","date_gmt":"2022-01-11T03:18:00","guid":{"rendered":"http:\/\/egrowonline.com\/?p=4468"},"modified":"2022-01-11T03:18:00","modified_gmt":"2022-01-11T03:18:00","slug":"is-ethereum-a-security-gensler-stutters-over-question-again","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=4468","title":{"rendered":"Is Ethereum a Security? Gensler Stutters Over Question Again"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"\">\n<section class=\"article-key-takeaways\">\n<h3>Key Takeaways<\/h3>\n<ul>\n<li>Gary Gensler has declined to comment on whether Ethereum could be classed as a security in a CNBC interview. <\/li>\n<li>The SEC Chairman reiterated the need to bring crypto tokens under the purview of securities regulations.<\/li>\n<li>The SEC has been criticized for its unclear guidelines on cryptocurrencies in recent months. <\/li>\n<\/ul>\n<\/section>\n<section class=\"article-share top\">\n<h4>Share this article<\/h4>\n<\/section>\n<p><span style=\"font-weight: 400\">SEC Chair Gary Gensler declined to comment on whether Ethereum could be classed as a security in a <em>CNBC<\/em> interview today.<\/span><\/p>\n<h2><span style=\"font-weight: 400\"><strong>Gensler Avoids Ethereum Security Question\u00a0<\/strong><\/span><\/h2>\n<p>Gary Gensler has shown his reluctance to clarify Ethereum\u2019s regulatory status again.<\/p>\n<p>In a <a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/video\/2022\/01\/10\/sec-chair-gary-gensler-on-potential-crypto-regulation-its-within-the-securities-laws.html\" rel=\"noopener noreferrer\">Monday interview<\/a> with <em>CNBC <span class=\"css-901oao css-16my406 css-bfa6kz r-poiln3 r-bcqeeo r-qvutc0\"><span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">Squawk <\/span><\/span>Box<\/em>, the SEC chairman discussed securities laws surrounding cryptocurrencies with Andrew Sorkin. When Sorkin challenged him about whether he thought Ethereum could be classed as a security, he swerved the question, remarking that he would not speak on a specific crypto asset. \u201cCan you explain your view of whether Ethereum is a security or not\u2014I think you\u2019ve actually suggested it isn\u2019t, but then while you believe that Ripple is a security, and I know there\u2019s an ongoing lawsuit related to Ripple, but could you speak to the Ethereum issue?\u201d Sorkin asked.<\/p>\n<p><span style=\"font-weight: 400\">\u201cI\u2019m not going to speak to any one matter,\u201d Gensler <a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/video\/2022\/01\/10\/sec-chair-gary-gensler-on-potential-crypto-regulation-its-within-the-securities-laws.html\" rel=\"noopener noreferrer\">told CNBC.<\/a> He added that the SEC doesn\u2019t \u201cget involved in public forums talking about any one project.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gensler\u2019s public stance on the number two crypto marks a stark contrast to his predecessor Jay Clayton, who stated that Ethereum was not a security during his tenure at the helm of the SEC.\u00a0<\/span><\/p>\n<p>Securities are instruments that represent ownership in a common enterprise with an expectation of a profit. The issue of whether crypto assets like Ethereum can be classed as a security has been a hot topic in recent years as the space has grown. While the SEC has been criticized for its unclear guidance on cryptocurrencies, Gensler has stated on several occasions that DeFi tokens could be categorized as securities. The SEC has also been in a widely publicized legal battle with Ripple after it accused the firm of selling unregistered securities since late 2020; it\u2019s due to come to a close sometime this year.<\/p>\n<p><span style=\"font-weight: 400\">Commenting further on the regulatory environment surrounding cryptocurrencies, Gensler remarked that many crypto tokens could be classed as securities and should register with the SEC. <\/span><span style=\"font-weight: 400\">He said:\u00a0<\/span><\/p>\n<blockquote>\n<p><span style=\"font-weight: 400\">\u201cUnfortunately, way too many of these [projects] are trying to say \u2018well, we are not a security, we are just something else.\u2019 I think the facts and circumstances suggest that they are investment contracts, they are securities, and they should register.\u201d\u00a0<\/span><\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">&#8220;Crypto tokens\u2013are raising money from the public, and are they sharing with the public the same sets of disclosures that helps the public decide and are they complying with our true in advertising?&#8221; says <a target=\"_blank\" href=\"https:\/\/twitter.com\/GaryGensler?ref_src=twsrc%5Etfw\" rel=\"noopener noreferrer\">@GaryGensler<\/a>. &#8220;It&#8217;s about bringing them into the securities laws.&#8221; <a target=\"_blank\" href=\"https:\/\/t.co\/8mvFimxzXV\" rel=\"noopener noreferrer\">pic.twitter.com\/8mvFimxzXV<\/a><\/p>\n<p>\u2014 Squawk Box (@SquawkCNBC) <a target=\"_blank\" href=\"https:\/\/twitter.com\/SquawkCNBC\/status\/1480539990786457605?ref_src=twsrc%5Etfw\" rel=\"noopener noreferrer\">January 10, 2022<\/a><\/p>\n<\/blockquote>\n<p><span style=\"font-weight: 400\">While Gensler did not elaborate on his current views on Ethereum\u2019s regulatory status, he <a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=zUkTi5OsXls\" rel=\"noopener noreferrer\">told an MIT class<\/a> that he thought it would pass the test as security when lecturing at the university in 2018. <\/span><span style=\"font-weight: 400\">At the time, Gensler explained that he thought Ethereum would pass the <a target=\"_blank\" href=\"https:\/\/www.sec.gov\/corpfin\/framework-investment-contract-analysis-digital-assets\" rel=\"noopener noreferrer\">Howey Test<\/a>\u2013an official framework under the U.S. Constitution to determine whether a particular investment is a security offering.<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u201cI think Ether, when it was done in 2014, would pass this [Howey] test. When I say \u2018pass,\u2019 it means it\u2019s a security,\u201d he said. He added that the SEC decided that it had become sufficiently decentralized by 2018 and therefore decided to \u201clet it go the other way.\u201d\u00a0<\/span><span style=\"font-weight: 400\">In 2014, Ethereum raised $18 million in Bitcoin in the first Initial Coin Offering to kick off the project.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Despite Gensler\u2019s lack of clarity surrounding Ethereum, he has <a target=\"_blank\" href=\"https:\/\/mitsloan.mit.edu\/ideas-made-to-matter\/a-cryptocurrency-a-security-depends\" rel=\"noopener noreferrer\">maintained<\/a> that Bitcoin is not a security back then and today. \u201cBitcoin came into existence as mining began as an incentive in validating a distributed platform,\u201d he said in 2018. The SEC has since approved the first Bitcoin-related exchange-traded funds tied to the Chicago Mercantile Exchange\u2019s Bitcoin futures prices under Gensler\u2019s leadership.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gensler\u2019s refusal to confirm or deny his thoughts on how other crypto assets would be classified could cause concern for believers in the technology. It also suggests that assets built on top of Ethereum\u2014such as the DeFi tokens Gensler has called out in the past\u2014could be subject to regulatory action in the future.\u00a0<\/span><\/p>\n<p>It is also noteworthy that the SEC\u2019s decision on whether a token is a security is subject to change. In Dec. 2020, the Bitcoin-focused project Stacks <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/blockstack-says-stx-will-become-a-non-security-asset\/\" rel=\"noopener\">said<\/a> that the SEC had changed its classification from a security token to a non-security once it had demonstrated that it was sufficiently decentralized.<\/p>\n<p><em>Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.<\/em><\/p>\n<section class=\"article-share bottom\">\n<h4>Share this article<\/h4>\n<\/section>\n<section class=\"article-footer\">\n<div class=\"disclaimer\">\n<div class=\"disclaimer-content\">\n<p>The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.<\/p>\n<p>You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.<\/p>\n<p>See <a target=\"_blank\" href=\"https:\/\/cryptobriefing.com\/terms-and-conditions\" rel=\"noopener\">full terms and conditions<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/section>\n<section class=\"recommended-posts\">\n<div class=\"section-content\">\n<div class=\"posts-list\">\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/gensler-says-sec-cant-and-wont-ban-cryptocurrency\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">Gensler Says SEC Can\u2019t and Won\u2019t Ban Cryptocurrency<\/h3>\n<p>\nGary Gensler, Chairman of the U.S. SEC, has stated that the regulator has no plans to ban cryptocurrency in the United States. SEC Won\u2019t Ban Crypto Gensler stated that the&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/blockstack-says-stx-will-become-a-non-security-asset\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">Blockstack Says STX Will Become a Non-Security Asset<\/h3>\n<p>\nBlockstack has stated that its Stacks (STX) token may not be considered a security in the U.S. after the platform\u2019s next upgrade. Stacks\u2019 Changing Legal Status On Dec. 7, Blockstack&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item na-item\" data-na_id=\"99168\" data-na_location=\"recommended\">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/mdex-overlooked-decentralized-exchange-pays-you-trade\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">MDEX: Overlooked Decentralized Exchange That Pays You to Trade<\/h3>\n<p>\nBased on statistics from\u00a0DeBank\u00a0and\u00a0dapp.com, one of the top-performing decentralized exchanges by TVL and trading volume this year is MDEX\u2014an AMM-based DEX functioning across the Huobi Eco-chain (HECO), Binance Smart Chain&#8230; <\/p>\n<\/div>\n<\/div>\n<div class=\"post-item \">\n<a target=\"_blank\" class=\"article-url\" href=\"https:\/\/cryptobriefing.com\/xrp-unfazed-by-new-turn-in-sec-vs-ripple-case\/\" rel=\"noopener\"><\/p>\n<div class=\"info\">\n<h3 class=\"title\">XRP Unfazed by New Turn in SEC vs. Ripple Case<\/h3>\n<p>\nWhile Ripple\u2019s legal battle against the Securities &amp; Exchange Commission (SEC) continues, the XRP token shows signs of consolidation. SEC vs. Ripple Takes New Turn Ripple takes another loss against&#8230; <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cryptobriefing.com\/is-ethereum-security-gensler-stutters-over-question-again\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Gary Gensler has declined to comment on whether Ethereum could be classed as a security in a CNBC interview. The SEC Chairman reiterated the need to bring crypto tokens under the purview of securities regulations. The SEC has been criticized for its unclear guidelines on cryptocurrencies in recent months. Share this article SEC [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[39],"tags":[158,3384,3386,1349,3385],"class_list":["post-4468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico","tag-ethereum","tag-gensler","tag-question","tag-security","tag-stutters"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/01\/gensler-warren-crypto-cover-768x403.png","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/4468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4468"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/4468\/revisions"}],"predecessor-version":[{"id":4470,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/4468\/revisions\/4470"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/4469"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4468"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}