In a new interview on CNBC, Gary Gensler, chairman of the US Securities and Exchange Commission, declined to comment on whether Ethereum is an unregistered security, a key issue on the case.
“We do not participate in such public forums in which we talk about a single project, a possible case and give legal advice.”
Gensler said that thousands of crypto projects are trying to raise money from the public, but it is important that they share a range of relevant information with investors.
The SEC chairman also complained about the lack of compliance in the industry, claiming that “too many” crypto projects were securities trying to bypass the law:
“Unfortunately, too many of these projects are trying to show that they are not a stock, but something else.”
Gensler has dodged the same question repeatedly during his tenure, claiming the SEC will not comment on certain cryptocurrencies. The SEC’s lawsuit against Ripple alleging that XRP is an unregistered security has now extended into its second year.
He also declined to comment on the ConsitutionDAO project, a decentralized autonomous organization that caused a stir in late 2021.
Critics often argue that the SEC lags a little behind modern technology because the Howey test, a test to determine whether a particular token is a security, has existed since May 1946.
Gesnler contradicts this argument. In his opinion, the basic idea of collecting money from the public and providing them with basic disclosures should continue to be adhered to. He stated that it was important to innovate in securities law.
“Our role with the SEC is to ensure that the public is fundamentally protected at all times.”
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