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US Securities and Exchange Commission (SEC) Chairman Gary Gensler's stance on cryptocurrencies has come under scrutiny after a video of a lecture he gave in 2018 emerged.
In the video, Gensler described cryptocurrencies as commodities or cash, rather than securities. He also noted that only a quarter of the market could be considered securities. This is in contrast to the SEC's current view, which suggests that many cryptocurrencies, including ICOs, should be considered securities and regulated as such.
The video has sparked controversy and criticism from members of the cryptocurrency community. Some are questioning whether Gensler's change in opinion is hypocritical in his current role, while others have called for an explanation. In response to the video, Coinbase CEO Brian Armstrong tweeted, "Wow", while Erik Voorhees, the founder of ShapeShift, asked when someone would be arrested for fraud. Farokh Sarmad, the founder of the Web3 podcast Rug Radio, called Gensler "disgusting".
However, some lawyers have pointed out that Gensler's current position as SEC chair may have influenced his views on cryptocurrencies. Preston Byrne, a US lawyer, explained that professors and law enforcers work in different capacities and that Gensler should not be held to the same views he had as a professor. Jonathan Schmalfeld, another US lawyer who specializes in blockchain technology, challenged Byrne's opinion, stating that Gensler's interpretation of the Howey Test should not change based on his role.
The video has raised questions about the SEC's current stance on cryptocurrencies and how it will continue to regulate the market going forward. As the crypto community continues to grow and evolve, it will be interesting to see how the SEC adapts to the changing landscape under Gensler's leadership.