Securities and Exchange Commission Chairman Gary Gensler, speaking Tuesday at the 2023 Securities Enforcement Forum in Washington, D.C., argued that existing law is adequate to bring enforcement actions against non-compliant firms in the cryptocurrency industry.
Gensler has been widely criticized by Congressional Republicans for not issuing regulations that clarify the status of cryptocurrencies as securities. His response Tuesday, as it has been elsewhere, is that the Howey Test, which defines a security as an “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others,” is adequate clarification, and there is nothing for the SEC to add.
“You know what the rules are,” Gensler said, addressing the cryptocurrency industry.
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