Concerns Raised by SEC Chair Gensler
In a recent interview, SEC Chair Gary Gensler expressed his worries about the crypto industry, citing its alleged role in scams, fraud, and non-compliance with securities laws.
Non-Compliance with Securities Laws
Gensler emphasized that many cryptocurrencies are considered securities under the law, and companies offering these assets must comply with regulations. He pointed out the lack of transparency and investor protections in the crypto space, contrasting it with the disclosure requirements for traditional public companies.
Conflicts of Interest in Centralized Crypto Markets
Gensler also raised concerns about conflicts of interest among intermediaries in the centralized crypto market. He highlighted practices that would be unacceptable in traditional exchanges, such as trading against the interests of investors.
Ethereum’s Classification Under Review
Gensler clarified that the SEC does not discuss ongoing investigations or express opinions on compliance with the law during congressional hearings. However, he confirmed that the commission is currently reviewing the classification of cryptocurrencies like Ethereum as securities.
Market Manipulation and Misleading the Public
Gensler stressed the SEC’s role in ensuring that investors have accurate information, regardless of their investment motives. He warned that market manipulation and misleading the public are prohibited.
