Gary Gensler criticizes crypto operators for lack of transparency in their disclosures
In response to numerous Wells notices, SEC Chair Gary Gensler expressed concerns about the lack of compliance within the crypto industry with federal regulations.
During an interview with CNBC’s Squawk Box on May 7, the U.S. SEC Chair criticized crypto businesses for failing to meet disclosure requirements typically seen in America’s financial markets.
Gensler reiterated his stance on crypto assets and argued that current regulations are adequate for overseeing the emerging digital currency sector.
When asked about Ethereum’s security status, Gensler evaded a direct answer, choosing not to confirm whether the SEC categorizes Ether (ETH) as a security or when investors can anticipate an Ethereum ETF.
Rather than defining ETH’s classification as a security or commodity, Gensler highlighted how crypto intermediaries in a centralized market environment engage in actions that would be forbidden on regulated platforms like the New York Stock Exchange.
Gensler’s interview came amidst increased regulatory scrutiny on crypto firms, with companies like Consensys, Robinhood, and Uniswap receiving Wells notices indicating potential lawsuits from the SEC.
Criticism from the Digital Chamber over the SEC’s approach with the Wells notice to Robinhood Crypto has led to protests from entities like Coinbase and Consensys, who claim Gensler’s commission has failed to establish clear guidelines for the crypto market.
In contrast, the Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam publicly named Ether, along with Bitcoin (BTC), as a commodity. The CFTC aims to position itself as a key regulator for U.S. crypto oversight.
While the CFTC has solidified its stance, the SEC under Gensler’s leadership continues its legal battles against the digital asset industry. Some members of Congress have raised concerns about the SEC’s enforcement tactics.
A previous document revealed an investigation into Ethereum 2.0 and hinted that Gensler has viewed the second-largest crypto asset as a security for over a year.
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