SEC Chair Gensler Stands Firm on View that Many Cryptocurrencies are Subject to Securities Laws

Gary Gensler, the Chair of the Securities and Exchange Commission, has reiterated his belief that many cryptocurrencies fall under existing securities laws, despite resistance from the industry. Speaking at the 2023 Securities Enforcement Forum, Gensler emphasized that crypto firms are subject to the same regulations as traditional finance. He also commented on the ongoing speculation surrounding pending applications for spot bitcoin ETFs, which the regulator has yet to approve. The SEC has brought several cases against crypto firms over the past year, often citing the Howey Test to determine whether transactions are investment contracts and therefore subject to securities laws.