Bitcoin

Gary

According to Thomas Gorman, a Dorsey &amp; Whitney partner and a former SEC senior adviser, the Securities and Exchange Commission (SEC) has a well-crafted plan to regulate cryptocurrencies and will not slow down its enforcement action. 
Gorman, who specializes in advocating SEC investigations and enforcement actions, said SEC chairman Gary Gensler has held dozens of meetings with people in the crypto space and laid out the rules for them. However, he said that many did not listen to him and he was only giving the organizer a showpiece. 
Gorman said the rules for determining whether a digital asset is a security are very clear and have been on the books for decades. He referred to the Howey test, a 1946 Supreme Court case that established a four-part test for securities. Gorman summed up this test as "an investment of money in a joint venture with the expectation of profits from the efforts of others." 
"The rules of Howey are very simple. You take people's money, pool it somewhere, make a promise and make a profit from the pool transaction and return it. Securities professionals who have worked in this field for years know this," he said. 
Gorman said that some major platforms in the crypto industry admit to doing so, but that they are not complying with securities laws. He stated that the cryptocurrency industry wants to be treated differently, but sees no reason for it. 
"It's a different kind of security. But securities laws have been designed to cover any variation that has arisen over the decades. Every time you make a variation of all these things, you don't want to come up with a whole new statute. That's what they want. They want something that's different for them." " said. 
Gorman said that the problem with changing the rules for the crypto industry will result in less investor protection and less information sharing. He stated that consumers who entrust their money to these platforms may not be fully aware of what they are doing and may not be able to make good decisions. 
Gorman stated that he thinks his recent lawsuits are quite winnable for the SEC, and they are very concise. He said he expects the SEC to impose more sanctions against crypto platforms and exchanges in the future. 
*Not investment advice. 
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Can SEC Win Its Lawsuits Against Binance, Coinbase, and Ripple? Lawyer Answered!

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