Cryptocurrencies in danger in the United States after the declarations of the SEC

The SEC casts a chill over the crypto ecosystem in the United States. Cryptocurrencies would be financial securities and should therefore be regulated as such.

A few days ago, Gary Gensler, the president of the Securities and Exchange Commission (SEC), gave a speech about the cryptocurrencies. And in a nutshell, the entire crypto ecosystem could be disrupted at the regulatory level. According to him, the vast majority of tokens are financial securities and not currencies or commodities.

The SEC casts a chill over the crypto ecosystem in the United States

In Gary Gensler’s own words, “Of the nearly 10,000 tokens in the crypto market, I think the vast majority are financial securities. The offers and sales of these thousands of crypto securities are covered by the laws in force. And this is extremely important since financial securities are strictly regulated in the United States by the SEC. And if cryptocurrencies were to fall under this status, it could spell the end of many projects.

Cryptocurrencies would be financial securities

Indeed, financial securities are related to shares or shares in companies, with very rigid rules. Impossible, for example, to promote it anyhow. And the legal risks are great. If this status were to be formalized, the entire functioning of the crypto ecosystem could be transformed.

Gary Gensler urges SEC teams to work with entrepreneurs to register their tokens as financial securities. And the chairman of the commission is well aware that all this is very delicate. The SEC could thus be “flexible” on certain points, but its objective always remains the same, to protect consumers: “Investors deserve to be protected against fraud and manipulation. The law requires these protections.”

and should therefore be regulated as such

And this would concern all intermediaries offering services in crypto. Many projects could be stopped if the SEC considers that they have sold financial securities without registering. And the American financial policeman has already brought down several projects like this: Ripple, for example, is in difficulty. Coinbase also had problems…

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