I wrote last Thursday about a speech that Gary Gensler, the chair of the US Securities and Exchange Commission, gave about securities regulation and crypto. My basic point was that Gensler wants the SEC to have jurisdiction over basically all of crypto, because basically every crypto token is a security, but that he does not seem to have any interest in writing new rules to accommodate the crypto market. Gensler’s approach would put the SEC in charge of crypto, and then more or less ban crypto, and I am not sure that is a winning position for him to take.
Today I want to come back to one bit of Gensler’s speech that I think represents an important philosophical disconnect between the SEC and the crypto world. Gensler said: