SEC Chief Gensler Expresses Frustration Over Crypto Focus in Financial Talks
Summary:
U.S. Securities and Exchange Commission (SEC) Chief, Gary Gensler, has expressed frustration over the extensive focus on cryptocurrency questions compared to those on traditional finance. In a CNBC interview, Gensler pointed out that while crypto represents a small segment of the market, it's responsible for a significant amount of scams and legal complications. He also refuted the notion that the SEC's focus on crypto determinates media attention. Gensler further declined to comment on queries about specific company cases, like Robinhood, but noted issues such as whether tokens are securities or whether Ether will be approved for an exchange-traded fund will be addressed when appropriate.
Gary Gensler, the U.S. Securities and Exchange Commission (SEC) chief, has voiced his exasperation over the overwhelming number of questions he receives related to cryptocurrency as opposed to traditional finance. During his interview on CNBC’s Squawk Box on May 7, he stated that crypto only represents a small fraction of the overall market landscape he oversees. However, he drew attention to the fact that the $2.4 trillion crypto market is riddled with scams, frauds, and irregularities, largely due to its disregard for U.S. securities laws.
When asked whether the media's focus on crypto is a result of the SEC’s attention towards it, Gensler contested that it was the other way round. He expressed his concern that even though the capital market is worth $110 trillion, a significant portion of the media’s attention is focused on cryptocurrencies. Regarding queries about the SEC's Wells notice to Robinhood for violating securities laws, Gensler sidestepped by asserting that he can't comment on individual companies.
Gensler emphasized that many investors aren’t receiving the necessary disclosures about crypto and that several tokens can be classified as securities as per U.S law as interpreted by the U.S. Supreme Court. In response, Coinbase’s legal chief, Paul Grewal, urged Gensler not to mislead the market into believing that all tokens qualify as securities.
When asked about Ether (ETH) being a security and the possibility of the SEC approving a related exchange-traded fund (ETD), Gensler maintained that these issues would be addressed at the right time by the five SEC commissioners. He also negated accusations by House Financial Services Chair Patrick McHenry of misleading Congress by refusing to answer questions about the SEC’s classification of ETH.
Gensler concluded by asserting that the SEC accurately reports its activities to Congress, despite abstaining from discussing whether they are conducting an investigation or whether someone is breaching the law. The SEC has lodged six crypto lawsuits this year, up from 46 last year and more than double that of 2021. These cases are currently underway in U.S. courts, with many of the defendants accused of selling unregistered securities and unlawful operation.
Published At
5/8/2024 5:09:52 AM
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