On May 11, 2022 the SEC Chair Gary Gensler, gave a speech to the International Swaps and Derivatives Association (ISDA). During the speech, Gary discussed Crypto and Derivatives.
"The fact is, most crypto tokens involve a group of entrepreneurs raising money from the public in anticipation of profits — the hallmark of an investment contract or a security under our jurisdiction. Some, probably only a few, are like digital gold; thus, they might be like commodities. Even fewer, if any, are actually being used in general commerce for payments." - Gary Gensler
The few that Gary is talking about are Bitcoin and Litecoin. Bitcoin is often compared to digital gold and Litecoin compared to digital silver.
He also has stated earlier in a presentation that Bitcoin and Litecoin also strike as non-securities, and are most-likely deemed commodities.
Bitcoin and Litecoin came into existence as mining began as an incentive in a distributed token platform, no initial token offering, no pre-mine coins.
It's time to bring clarity to the market. It's time to focus on Bitcoin and Litecoin and de-list crypto-securities or at a minimum bring transparency and regulation.
Gary also went on to make a statement about the crypto exchanges and platforms offering crypto-security swaps and that they must work with the SEC securities regime.
"Make no mistake: If a swap is based upon a crypto asset that is a security, then that is a security-based swap. Thus, our rules apply to them. Any offer or sale to retail participants must be registered under the Securities Act of 1933 and effected on a national securities exchange.
And furthermore, if platforms — whether in the decentralized or centralized finance space — offer security-based swaps, they are implicated by the securities laws and must work within our securities regime."
Full transcript of the speech can be found here: