Crypto platforms outside the law if not registered: Gary Gensler

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Crypto platforms outside the law if not registered: Gary Gensler
08 Mar 2022
5 min read

News Synopsis

According to SEC Chairman Gary Gensler, many major crypto exchanges may offer securities for trading, which puts them under the legal jurisdiction of the Securities and Exchange Commission.

He said that the law is clear, a platform that has securities on it is an exchange. It is a question of whether they are registered or they are operating outside the law.

Gensler added that the existing legislation on crypto platforms is "straightforward" and many actually offer securities, which means you need to register with the SEC and make "appropriate disclosures about tokens" to protect users and the general public from fraud and financial manipulation.

He further said that it is the responsibility of the SEC to protect investors and that protection in large part comes from company disclosure about these highly investable assets.

He pointed out that many cryptocurrency tokens were previously found to be securities, so at least some of the thousands of tokens offered on various platforms are likely to be eligible for securities.

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