The SEC Chair said that any project that raises funds from the public has to follow the security laws.
Gary Gensler said that he is not against innovation taking place in the crypto space.
The U.S. Securities and Exchange Commission (SEC) has yet to come with a clear definition of which crypto projects come under security laws. However, during his recent interview with CNBC, SEC Chairman Gary Gensler said that any crypto projects raising funds from the public should register themselves with the SEC. Thus, the crypto tokens launched as a part of it shall be treated as securities.
Speaking at CNBC’s Squawk Box, the SEC chair talked about regulatory compliance in the crypto space. Gary Gensler’s response came when asked about ConstitutionDAO, a project that tried to buy a copy of the U.S. Constitution through crypto crowdfunding.
However, the SEC Chairman refused to comment on whether (ETH) qualifies as a security or not. He said:
I won’t comment on any one project. But you raise
