- SEC recently alleged that 9 crypto assets listed by Coinbase are securities.
- SEC Chairman says, most crypto tokens have the attributes of securities.
After charging a former Coinbase employee in an insider trading case, The U.S Securities and Exchange Commission (SEC) has come under fire for its viewpoint of regulation of the cryptocurrency industry. The SEC recently claimed that nine of the tokens listed on the Coinbase exchange are securities. But the exchange platform instantly refuted the SEC’s assertion.
According to the SEC, crypto tokens such as AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM, which are listed on the exchange are unregistered securities.
United States Senator, Pat Toomey Tweeted that:
The enforcement action is the perfect example of the SEC having a clear opinion on how and why certain tokens classify as securities. Yet the SEC failed to disclose their view before launching an enforcement action.
An Unnecessary Attitude Towards Crypto
In addition to this, in a recent interview, SEC Chairman Gary Gensler expressed his views on cryptocurrency regulation, saying that he is neutral about the technology but not about investor protection. He additionally added that there are countless tokens, the majority of which have securities-like characteristics. He also alerted the investors about the risk in the crypto sector and noted that the danger in this industry is very high.
Moreover, Tom Emmer, the U.S. Congressman criticized the SEC and Gary Gensler last week for taking action against the organizations that were not under its purview. The SEC has turned into a power-hungry regulator under Gary Gensler, politicizing enforcement, luring corporations to come in and chat to the Commission, then punishing them with enforcement proceedings, discouraging good-faith collaboration, as per Tom Emmer.
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