SEC Chair Gary Gensler declares war on crypto industry, claiming many platforms are violating securities laws!

The Chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, has once again taken aim at the crypto industry, claiming that many platforms are operating in violation of securities laws. In an April 27th tweet, Gensler shared a video of himself describing crypto assets as "investment contracts" and called on platforms offering such products to register with the SEC to protect American investors.

According to Gensler, "an investment contract exists when you invest money in a common enterprise with a reasonable expectation of profits, to be derived from the efforts of others." He went on to say that many crypto firms and platforms violate securities laws if they are not registered with the SEC. Gensler has continually asserted that essentially all crypto assets, apart from Bitcoin, fall under the classification of securities.

In response to Gensler's latest video, many have pointed out that prior to taking the helm at the SEC, Gensler had a completely contradictory view of the crypto market. A viral video has been circulating across Crypto Twitter over the past week, where Gensler can be seen lumping crypto in the same category as cash and commodities and describing digital assets as "non-securities." The comments were made during a "Blockchain and Money" lecture in 2018 when Gensler was employed as a professor at the Massachusetts Institute of Technology (MIT).

Despite Gensler's earlier stance, the SEC has been at the forefront of the US crypto crackdown, with the Chair calling for greater regulation and oversight of the industry. Many crypto advocates argue that the SEC's approach to crypto regulation is too heavy-handed and that it stifles innovation and growth.

During an April 18th hearing, Gensler was grilled by members of Congress over his leadership and the SEC's approach to crypto regulation, which seemingly appears to be regulation by enforcement. Despite repeated questioning, Gensler refused to confirm on record whether he thought Ether was a security or not.

Crypto markets have long suffered from a lack of regulatory clarity and compliance, with different regulators around the world taking vastly different approaches to the industry. In the US, regulators have been increasingly vocal about the need for greater regulation and oversight, with Gensler at the forefront of these efforts. However, many in the industry argue that the current regulatory landscape is overly burdensome and that it stifles innovation and growth.