SEC Chairman Gensler Criticizes Crypto Firms, Calls for Increased Transparency
Summary:
SEC Chairman Gary Gensler criticizes crypto industry for sidestepping registration obligations, calling for more transparency. Amid enforcement actions against major crypto firms such as Kraken, Binance, Ripple, and Coinbase, Gensler's comments have underlined the importance of clear regulatory rules to foster U.S. innovation. The SEC is also reportedly exploring the reclassification of Ether as a security. In recent news, the SEC has approved crypto-related exchange-traded products, including Bitcoin futures and the first spot Bitcoin exchange-traded funds.
The Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, has voiced criticism towards participants in the crypto industry for evading the requirement to register with the regulatory body. In his concluding comments at Columbia Law School on March 22, Gensler lamented the crypto community's attitude towards regulatory oversight. Expressing his support for compulsory disclosure from market participants, he recollected a quote from Supreme Court Justice Louis Brandeis, stating, “Sunlight is the greatest disinfectant.”
Gensler voiced concerns over those trying to undermine the SEC’s disclosure ethic, pointing out there are players in crypto securities markets who deliberately dodge registration rules. This evasion means no required revelations, something Gensler believes would be beneficial in cleansing the crypto markets.
These statements were made amidst the SEC’s ongoing enforcement actions against high-profile crypto companies, such as Kraken, Binance, Ripple, and Coinbase. Numerous crypto entities and supporters are urging the SEC to establish unambiguous regulations, believing this will foster innovation within the United States.
Following Gensler's criticism, the SEC is believed to have launched an initiative to reclassify Ether (ETH) as a security under its supervision by sending out subpoenas. Over the past couple of years, it has given the green light to crypto-linked exchange-traded products on U.S. exchanges, including investment tools linked to ETH and Bitcoin (BTC) futures, and the maiden spot BTC exchange-traded funds launched in January.
Published At
3/23/2024 12:23:23 AM
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