• Crypto lawyers have rebutted Gary Gensler’s claims that all cryptocurrencies except Bitcoin are securities under the SEC’s jurisdiction.
• Jake Chervinsky and Logan Bolinger argued that Gensler’s opinion is not the law and the SEC must prove its case in court for each asset individually.
• The debate around crypto regulation is ongoing as governments around the world continue to issue their own laws and regulations.

Crypto Lawyers Debate Gensler’s Crypto Regulation Claims

Crypto lawyers have weighed in on recent comments from US Securities and Exchange Commission Chair Gary Gensler, who claimed in a Feb 23 New York Magazine interview that every cryptocurrency except Bitcoin is a security falling under the agency’s remit. Jake Chervinsky, a lawyer and policy lead at crypto advocacy group the Blockchain Association, argued however that Gensler’s “opinion is not the law” despite his claimed command over the crypto sector. Lawyer Logan Bolinger also chimed in, tweeting on Feb 26 “that Gensler’s opinions on what is or isn’t a security are not legally dispositive” — meaning it’s not the final legal determination.

SEC Lacks Authority To Regulate Crypto Assets

Chervinsky added “until and unless“ the SEC „proves its case in court“ for its jurisdiction over each individual token „one at a time“ then it „lacks authority to regulate any of them.“ This argument has been echoed by other prominent members of the crypto industry who believe that governments should wait until clear regulatory frameworks are established before making sweeping statements about an entire asset class.

Impact of Regulatory Uncertainty

The lack of clarity surrounding government regulations continues to be one of biggest challenges facing cryptos today, as many traditional investors remain wary due to fear of potential future rules changes or enforcement actions. In particular, institutional investors have expressed caution over investing directly into cryptos until more concrete rules are laid out by authorities worldwide.

Growing Need For Legal Clarity

As governments around the world continue to develop their own laws and regulations regarding digital assets, there is growing need for legal clarity regarding their status as well as how they will be taxed and regulated when used for trading purposes or investments. This could help create much needed investor confidence which would open up new avenues for investment into this fledgling sector.


Overall, it seems likely that both private companies operating within this space as well as public regulatory bodies will continue to debate these issues until some level of consensus can be reached regarding how best to approach regulating digital assets such as cryptocurrencies going forward.

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