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SEC Chief Gary Gensler Criticizes Cryptocurrencies for Inadequate Disclosures
Securities and Exchange Commission (SEC) Chairman Gary Gensler has criticized the cryptocurrency industry for failing to provide adequate disclosure to investors compared to the traditional financial space. In an interview with CNBC, Gensler said that most cryptocurrencies are considered securities and must comply with relevant laws.
Gensler’s comments came just days after Robinhood’s crypto arm received a warning from Wells for potential enforcement action by the SEC. The regulator issued similar warnings to Coinbase and the decentralized finance (DeFi) cryptocurrency. exchange Uniswap. The cryptocurrency market has been under increasing regulatory scrutiny in recent years. During the interview, Gensler addressed this issue, offering insights into the intersection between cryptocurrency and traditional stock markets.
Regarding recent developments, Gensler argues that the SEC has a mandate to uphold legal standards in the financial sector. He stressed that ongoing litigation and enforcement efforts are aimed at safeguarding investors’ interests.
“But taking a step back, in the field of cryptocurrencies, without prejudice to any of them, many of these tokens are securities under national law, as interpreted by the United States Supreme Court. So we follow that law. And you, the investors they are not receiving the required or necessary information about those assets,” Gensler told CNBC.
Gensler outlined the broad jurisdiction of the SEC, which oversees a staggering $110 trillion in capital markets. While the stock market makes up a significant portion, Gensler pointed this out cryptocurrencies although this is a smaller segment, they are disproportionately affected by scams and failure to comply with securities laws.
Amid growing concerns about cryptocurrency-related fraud, Gensler highlighted the lack of regulatory compliance within the crypto sector. He highlighted the crucial role of disclosure in traditional securities markets, highlighting the disparity in transparency between crypto assets and traditional securities.
Gensler Reaffirms Cryptocurrency Regulation
Responding to questions about the attention paid to cryptocurrencies, Gensler highlighted the media’s role in shaping the discourse. While the spotlight is on cryptocurrencies, Gensler expressed his commitment to addressing broader market issues, including ensuring investor protection and market integrity. He maintains his long-standing position that most cryptocurrencies are securities.
Recently, Robinhood CEO Vlad Tenev criticized this reinforcing action by the SEC, stating: “Over the past three years, we have reached a state of regulatory onslaught that is harmful to American businesses and consumers. The SEC’s continued attack on cryptocurrencies, coupled with recent rule proposals such as Predictive Data Analytics, mark yet another improper attempt by the administrative state to stifle innovation.”
Securities and Exchange Commission (SEC) Chairman Gary Gensler has criticized the cryptocurrency industry for failing to provide adequate disclosure to investors compared to the traditional financial space. In an interview with CNBC, Gensler said that most cryptocurrencies are considered securities and must comply with relevant laws.
Gensler’s comments came just days after Robinhood’s crypto arm received a warning from Wells for potential enforcement action by the SEC. The regulator issued similar warnings to Coinbase and the decentralized finance (DeFi) cryptocurrency. exchange Uniswap. The cryptocurrency market has been under increasing regulatory scrutiny in recent years. During the interview, Gensler addressed this issue, offering insights into the intersection between cryptocurrency and traditional stock markets.
Regarding recent developments, Gensler argues that the SEC has a mandate to uphold legal standards in the financial sector. He stressed that ongoing litigation and enforcement efforts are aimed at safeguarding investors’ interests.
“But taking a step back, in the field of cryptocurrencies, without prejudice to any of them, many of these tokens are securities under national law, as interpreted by the United States Supreme Court. So we follow that law. And you, the investors they are not receiving the required or necessary information about those assets,” Gensler told CNBC.
Gensler outlined the broad jurisdiction of the SEC, which oversees a staggering $110 trillion in capital markets. While the stock market makes up a significant portion, Gensler pointed this out cryptocurrencies although this is a smaller segment, they are disproportionately affected by scams and failure to comply with securities laws.
Amid growing concerns about cryptocurrency-related fraud, Gensler highlighted the lack of regulatory compliance within the crypto sector. He highlighted the crucial role of disclosure in traditional securities markets, highlighting the disparity in transparency between crypto assets and traditional securities.
Gensler Reaffirms Cryptocurrency Regulation
Responding to questions about the attention paid to cryptocurrencies, Gensler highlighted the role of the media in shaping the discourse. While the spotlight is on cryptocurrencies, Gensler expressed his commitment to addressing broader market issues, including ensuring investor protection and market integrity. He maintains his long-standing position that most cryptocurrencies are securities.
Recently, Robinhood CEO Vlad Tenev criticized this reinforcing action by the SEC, stating: “Over the past three years, we have reached a state of regulatory onslaught that is harmful to American businesses and consumers. The SEC’s continued attack on cryptocurrencies, coupled with recent rule proposals such as Predictive Data Analytics, mark the ‘yet another improper attempt by the administrative state to stifle innovation.”