Those crypto intermediary platforms that match orders in crypto security tokens of multiple buyers and sellers using established non-discretionary methods which are the regulatory criteria for being an exchange then crypto investors should benefit from exchange rulebooks that protect investors against fraud, manipulation, front-running, wash sales, and other misconduct.

Those crypto intermediaries that engage in the business of effecting transactions in crypto security tokens for the account of others and are acting like brokers or engage in the business of buying and selling crypto security tokens for their own account and acting like dealers, then as a result, crypto investors should get the protections investors receive from regulated broker-dealers.

Those crypto intermediaries that provide lending functions for a return where a lending platform is offering and selling crypto security token securities, then the crypto intermediary platform also comes under SEC jurisdiction.

The vast majority of the nearly 10,000 crypto tokens in the crypto market are securities and the related offers and sales of thousands of crypto security tokens are covered under the US securities laws.

Given that many crypto tokens are securities in the view of the SEC, many crypto intermediaries are transacting in securities and therefore must register with the SEC in some capacity.

The crypto markets are not incompatible with existing US securities laws and investor protection is just as relevant regardless of underlying technologies related to new types of securities.

Some crypto tokens may not fall within the existing definition of a security, which he classified as "crypto non-security tokens" and as a result those types of tokens may fall within the regulatory authority of the CFTC while crypto security tokens fall within the regulatory authority of the SEC.

Certain crypto intermediaries may need to register with both the SEC and the CFTC, such as, for example, where the SEC and the CFTC currently have dual registrants in the broker-dealer space and in the fund advisory space.

Crypto intermediaries, whether they call themselves centralized or decentralized, often offer an amalgam of services that typically are separated from each other in the rest of the securities markets by specific functions such as exchange functions, broker-dealer functions, custodial and clearing functions, and lending functions. Such registration could require splitting certain functions of the crypto intermediary being performed by separated legal entities to mitigate conflicts of interest.

SEC staff will work with crypto intermediaries to ensure they register each of their functions.

Given the nature of crypto investments, Gensler recognized that it may be appropriate for the SEC to be flexible in applying existing disclosure requirements.

Most tokens in the crypto market are securities.

Offers and sales of these tokens are covered by securities laws.

Crypto intermediaries should register with the SEC.