Last Updated on March 30, 2023 by Bitfinsider

According to Gary Gensler, chairman of the Securities and Exchange Commission (SEC), the regulator is in charge of defining what a security is, not strictly law.

Gensler told reporters following a House Appropriations Committee hearing on Wednesday that current securities laws “cover most of the activity that’s happening in the crypto markets.”

“If Congress were to act, though I don’t think we need these authorities, not to undermine inadvertently through definitions of what’s in or out, or in essence allowing for conflicts that we don’t allow,” Gensler said.

According to Gensler, he added: “I think there is one agency — the Securities and Exchange Commission, overseen by two committees — the House Financial Services and Senate Banking, and the courts that define what a security is and not individual crypto exchanges selecting that,”

Over the years, lawmakers have proposed laws to control cryptocurrency. Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., intend to resubmit legislation next month that would, among other things, declare that the Commodity Futures Trading Commission has authority over commodities that are digital assets, such as bitcoin. Gensler continued, “I think many of the legislative vehicles would undermine the securities remit if adopted.”

The hearing was held shortly after the CFTC filed a 74-page complaint accusing Binance, the biggest cryptocurrency exchange in the world, of engaging in unregistered trading activity. Among them is the possibility that Binance knew it had assisted in facilitating illegal trades.

While noting that the agency has taken actions against other exchanges, Gensler refused to say whether the agency intended to bring its own actions against Binance.

Gensler also informed lawmakers during the House meeting that there are already laws in place to control cryptocurrency. He explained, “They’re called the securities regulation.”

Gensler reaffirmed that the majority of cryptocurrencies are securities and that foreign companies that offer to American investors must adhere to the securities laws.

According to Gensler, “if you’re touching US investors, selling these tokens to US investors, then you come under either the securities laws” or the CFTC’s laws.