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Securities and Exchange Commission Chair Gary Gensler has no plans to recuse himself from decisions related to cryptocurrencies, despite accusations of bias from the industry.
“I am well aware of my ethical responsibilities,” Gensler told reporters at a Wednesday press conference. “I’m fully compliant.”
Last month the Blockchain Association, an industry group whose members include Grayscale, Crypto.com and Chainalysis, published a paper arguing that Gensler is required to recuse himself because he is unable to approach with an open mind the question of whether a particular crypto asset is a security.
Whether a particular cryptocurrency is a “security” in the eyes of the law determines whether it must be registered with the SEC. Any issuer of a security seeking to raise money from the public must also conform to disclosure requirements and other regulations.
Read more: Supreme Court’s student-loan decision could be a blueprint for blocking SEC’s war on crypto
“It’s clear that the digital assets industry cannot expect a fair assessment from Chair Gensler,” Jake Chervinsky, chief policy officer at Blockchain Association, said at the time. “His steadfast view that all digital assets except bitcoin are securities means that he cannot approach enforcement decisions with a fair and impartial mind, as required by the SEC’s Wells process and federal law.”
Gensler has repeatedly said that he believes the “vast majority” of the thousands of extant cryptocurrencies are securities, though during his tenure at the SEC he has declined to discuss whether any particular digital asset is a security, other than bitcoin
BTCUSD,
Gensler has said bitcoin is not a security, but a commodity.
The crypto industry has stepped up its criticism of Gensler and the SEC after the regulator sued the two largest crypto exchanges — Binance and Coinbase
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— for running unregistered securities exchanges, among other violations.
Neither exchange has agreed to settle with the SEC, and it may be up to the federal court to determine whether the assets listed on them are in fact securities.
“Without prejudging any one token, I think the law is clear,” Gensler said Wednesday. “We’re obligated…to enforce the law as Congress passed it and how the courts interpret it.”
