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US SEC Chairman Continues Drumbeat for Increased Cryptocurrency Regulation

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We recently reported about how U.S. Securities and Exchange Commission chairman Gary Gensler has made numerous comments concerning increased regulation over various aspects of the cryptocurrency industry.  That same theme was part of his prepared remarks to Congress on September 14, 2021.

The Chairman remarked that there was not enough investor protection in crypto finance, issuance, trading, or lending.  He said: “[A]t this time, it’s more like the Wild West or the old world of ‘buyer beware’ that existed before the securities laws were enacted. This asset class is rife with fraud, scams, and abuse in certain applications. We can do better.”

The Chairman was careful to note that each token’s legal status depends on its own facts and circumstances, but also remarked that “the probability is quite remote that, with 50, 100, or 1,000 tokens, any given platform has zero securities.”  He once again invited crypto trading and lending platforms to “come in and talk to us.”  In addition to those platforms, the SEC is looking at the offer and sale of crypto tokens, stablecoins and custody of crypto assets.  The Chairman also noted that the SEC was working with the Commodity Futures Trading Commission  because the two agencies each have relevant, and in some cases, overlapping jurisdiction in the crypto markets.

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David Zaslowsky is partner in the Litigation Department of Baker McKenzie's New York office. He helps companies solve complex commercial disputes in arbitration and litigation, especially those involving cross-border issues and Section 1782 discovery. David has a degree in computer science and, as a result, has worked on numerous technical-related disputes, including, most recently, those involving blockchain and artificial intelligence. In April 2025, Attorney Intel named David one of the top 25 blockchain lawyers in the country. He is the editor of the Firm's blockchain blog and co-editor of the firm's International Litigation & Arbitration Newsletter. David has been included for a number of years in the Chambers USA Guide and Chambers Global Guide for his expertise in international arbitration. He also sits as an arbitrator and is on the roster of arbitrators for a number of arbitral institutions. David sits on the Board and chairs the governance committee of the New York International Arbitration Center, and is a founding member of the International Arbitration Club of New York. For over 35 years, he has written and spoken often on the subjects of arbitration and international litigation.

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