United

Chair

The SEC has <a href="https://coingape.com/pro-xrp-lawyer-bloomberg-analysts-slam-us-secs-crypto-asset-remark/" rel="noopener noreferrer nofollow">started a controversy</a> in the cryptocurrency industry after it recently referred to “digital asset securities” as “crypto asset securities” in a published educational material.
The nomenclature adopted by the SEC has raised concerns in the minds of top industry players including pro-XRP lawyer Bill Morgan and Bloomberg analysts who took to the X platform to express their opinions.
<h2 id="b-sec-warns-investors-against-crypto-b">SEC Warns Investors Against Crypto</h2>
For context, the SEC shared a post on the X app a few days ago, urging investors to be cautious when involving in crypto investments.&nbsp;
The agency highlighted a previously published educational document which was tagged “Exercise Caution with Crypto Asset Securities:&nbsp;Investor Alert”. In the document, the SEC’s Office of Investor Education and Advocacy reiterated the agency’s thoughts on crypto investments.&nbsp;
Investors were&nbsp;urged to remain vigilant if they are considering an investment involving crypto asset securities.&nbsp;
<h2 id="b-is-the-sec-against-crypto-b">Is the SEC Against Crypto?</h2>
Furthermore, the SEC regarded digital assets as “volatile ” and “speculative”, citing their ability to fluctuate significantly. The unfortunate insolvency and collapse of crypto projects like Celsius Network, Babel Finance, FTX, BlockFi and many others were referenced as a shortcoming of crypto.&nbsp;
A look through the SEC’s crypto educational resources seem to demonstrate the agency’s displeasure about crypto rather than an enlightenment. Over time, many crypto enthusiasts have questioned the SEC’s exact stance on digital, seeing that it has failed to offer clarity on crypto regulation. Much more, Gary Gensler, the SEC Chair has been chided severally for his misinterpretation of crypto assets.
<h2 id="b-sec-chair-receive-backlash-on-crypto-categorization-b">SEC Chair Receive Backlash on Crypto Categorization&nbsp;</h2>
Last year, Gensler boldly declared that all cryptocurrencies <a href="https://thecoinrise.com/sec-chairman-faces-congressional-heat-over-crypto-regulation/" rel="noopener noreferrer nofollow">except Bitcoin</a> (BTC), are securities and are therefore, <a href="https://thecoinrise.com/sec-chair-got-backlash-from-crypto-lawyers-over-securities-classification/" rel="noopener noreferrer nofollow">subject to the federal securities laws.</a>&nbsp;
This categorization sparked a lot of reaction from the public who felt that the SEC Chair was overreaching his jurisdiction with crypto. Currently, founder and host of the Thinking Crypto Podcast,&nbsp;Tony Edward&nbsp;has highlighted that the SEC has no explanation to the sudden change of term.
Edward noted that the term “securities” in this context, does not have any legal grounds and is intentionally misleading. Eric Balchunas and James Seyffart, two Bloomberg ETF analysts, are also skeptical about the new nomenclature. Notably, this development comes right when the crypto ecosystem is still grappling with regulatory ambiguity in the United States.
The post <a href="https://thecoinrise.com/sec-adopts-new-nomenclature-for-digital-assets-sparks-skepticism/" rel="noopener noreferrer nofollow">SEC Adopts New Nomenclature For Digital Assets, Sparks Skepticism</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

SEC Adopts New Nomenclature For Digital Assets, Sparks Skepticism

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