SEC increases its pressure on cryptocurrencies to be classified as securities
SEC increases its pressure on cryptocurrencies to be classified as securities
The U.S. Securities and Exchange Commission (SEC) committee sent an official letter to SEC Chairman Gary Gensler calling for a crackdown on cryptocurrency companies that fail to register their tokens as securities.
The committee noted that it considers all cryptocurrencies to be financial securities.
"The SEC should continue to be aggressive in bringing enforcement actions against companies that are violating the federal securities laws in the crypto space, including, issuers, custodians and those acting as unregistered platforms that offer trading in crypto asset investments," the letter states.
According to finance.yahoo, the committee said that some members of the crypto sector have caused significant harm to unsophisticated investors through their illegal activities.
Previously, Gary Gensler stated that all cryptocurrencies except bitcoins are securities. His view was echoed by the SEC committee, which reiterated that "all, if not all, crypto tokens are securities and that they, as well as the platforms and custodians dealing with them, are subject to regulation under the federal securities laws".
In its statement to the SEC, the committee said it needed to be tough and aggressive in opposing legislation that could impose exemptions from securities regulation on crypto assets.
The SEC has cracked down on many crypto exchanges, accusing them of violating the rules. In particular, cryptocurrency exchange Kraken was fined $30 million in February "for illegally providing cryptocurrency listing services." The SEC also said it intends to sue Paxos, which issues Binance USD, because it considers the token to be an unregistered security.
