The U.S. Securities and Exchange Commission (SEC) has filed several lawsuits against different firms and individuals for breaching securities laws. However, Gary Gensler, SEC chair has given out assorted statements over crypto regulations. This time XRP’s lawyer caught Gensler red handed replying to questions over a security.
Is SEC chair missing vital info?
In the interview with CNBC, Becky Quick mentioned that the CFTC chair said that they should be regulating some of the crypto related assets. She added that the SEC built some case laws and set some examples of people agreeing to settle with the agency.
She added that these moves affirm that the SEC should lead the regulations for more.
To this SEC chair replied the law is clear over this. He claims that based on the facts and circumstances most of these tokens are securities. While he added that when a group of entrepreneurs is raising money from the public and they all are anticipating a profit out of it then they need to disclose this.
However, John Deaton, Amicus Curiae in the XRP lawsuit raised concern over this statement. He stated that the SEC chair is wrong over this. Gensler ignores two major requirements considered under the law.
Why is Gensler wrong over this?
First, he ignores the common enterprise requirement. Second, the SEC chair ignores the non investments use of tokens. If it is not acquired for investment, it is not a security. He added that the SEC chair is literally gaslighting the public over crypto.
Earlier, Coingape reported that XPR lawyer has tapped the SEC Chair’s new narrative over crypto regulation by Kim Kardashian Case. However, the American celebrity paid around $1.26 million in penalties to settle the case.
Meanwhile, the XRP holder’s lawyer stated that the SEC chair went on to use the term ‘ ‘Crypto asset security’. This is his new part of controlling the narrative.
