SEC Chairman Gensler Advocates for Stricter Crypto Regulations and Transparency
SEC's Gensler emphasizes the need for stricter oversight and clear disclosures in crypto
During an interview with CNBC, Gary Gensler, SEC Chairman, emphasized the regulatory authority's vigilant role in the cryptocurrency sector. This discussion followed shortly after the SEC issued a Wells notice to the trading platform Robinhood, signaling potential violations of securities laws.
Gensler stressed the importance of the SEC as a regulatory enforcer ensuring that entities dealing in securities comply with the law. He raised concerns about the adequacy of information disclosures in the cryptocurrency market, contrasting it with the established norms in traditional securities markets.
According to Gensler, digital assets are deemed securities under current laws and, as such, require detailed disclosures similar to those expected from public companies. The conversation also touched on recent legal actions, where Gensler avoided commenting on specific cases, such as the ongoing lawsuit by Consensys against the SEC, which revolves around the regulatory status of Ethereum (ETH).
Historically, ETH's classification has varied, with some former SEC employees not considering it a security, while the Commodities and Futures Trading Commission recognizes it as a commodity.Gensler noted that applications for Ether ETFs are pending before the commission.
He assured that these would be addressed timely, highlighting the careful consideration such applications require due to the complex nature of cryptocurrency products. Lastly, Gensler criticized certain practices within the centralized crypto market that could harm investors.
He pointed out that such practices would not be permissible on traditional exchanges like the New York Stock Exchange, illustrating his point about the need for strict regulatory oversight in the crypto industry. Through his remarks, Gensler reinforced the SEC's role in monitoring and enforcing compliance within the burgeoning crypto market, underscoring ongoing efforts to enhance investor protections and market integrity.
