SEC Chairman Gary Gensler recently stated in an interview that all CRYPTOCURRENCIES, except Bitcoin, fall under the jurisdiction of the agency. However, his comments have been disputed by cryptocurrency industry lawyers who argue that the SEC must prove its case in court for each token individually before it can claim jurisdiction over them.

Jake Chervinsky, a lawyer and policy leader at the cryptocurrency advocacy group Blockchain Association, argued in a tweet that Gensler’s opinion is not the law, despite his alleged dominance over the cryptocurrency sector. Furthermore, he claimed that until the SEC proves its case in court for each individual token, it lacks the authority to regulate any of them.

Another attorney, Logan Bolinger, also noted that Gensler’s views on what is or is not a security are not legally dispositive, meaning it is not the final legal determination. He added that judges, not SEC chairmen, ultimately determine what the law means and how it is applied.

Bitcoin Policy Institute policy lead Jason Brett said Gensler’s comments should be feared rather than celebrated. He claimed there are ways to win other than through a regulatory moat.

Gabriel Shapiro, general counsel at investment firm Delphi Labs, outlined in a series of tweets the enforcement difficulties the SEC would have to carry out on the industry to cement its rule. Shapiro noted that, according to Gensler, more than 12,300 tokens worth around $663 billion are unregistered securities that are illegal in the US. The SEC would have to file a lawsuit against each token creator, which it would apparently be impossible to enforce.

Shapiro also noted that the SEC has handled cryptocurrency in two ways: either by fining token creators and requiring the issuer to register, or by fining and ordering the created tokens to be destroyed and removed from exchanges.

The comments made by Gensler have sparked concern in the cryptocurrency industry. Lawyers have highlighted the need for the SEC to prove its case in court for each token individually before it can claim jurisdiction over them. Meanwhile, the SEC faces the seemingly impossible task of enforcing its rule against more than 12,300 tokens. The situation remains unresolved, and the crypto industry will be watching closely to see how it plays out in the coming weeks and months.