SEC Chair @GaryGensler spoke at the @AspenSecurity Forum today on cryptocurrencies.
In the thread below are some clips from his speech, highlighting investor protection concerns in the space, and the SEC's authority 🧵
@GaryGensler: “I believe these platforms not only can implicate securities laws — but some also implicate commodities & banking laws.
“Many platforms have 50-100 crypto tokens trading on them…the probability is quite remote that w/ 50+ tokens, that none of them are securities.”
@GaryGensler: “Make no mistake: to the extent there’s securities on the platforms, the platforms must register unless they meet exemptions.
Make no mistake: If it’s a lending platform that offers securities, it also falls under SEC jurisdiction.” #crypto #AspenSecurityForum
@GaryGensler notes that stablecoins are ~110 billion in value, and embedded in DeFi.
"These platforms may facilitating those seeking to sidestep a host of public policy goals.”
Gensler lists banking laws, tax complaince, money laundering, sanctions as items for concern.
@GaryGensler: “These stablecoins may be securities & investment companies. To the extent they are, we at the SEC will apply full investor protection under the Investment Company Act.”
@GaryGensler: “Large parts of crypto are sitting astride, not operating w/in regulatory frameworks that protect investors, guard vs. illicit activity...
Financial innovations throughout history don’t long thrive outside public policy frameworks.” #AspenSecurityForum
@GaryGensler: “I would also note to some thinking of investing in this space: private money often fails.
We had a lot of private monies during the wildcat banking era of the mid-19th century.”
#AspenSecurityForum #AspenSecurity #crypto #stablecoins
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