SEC Chairman Gensler Discusses Crypto Industry Regulation

According to Blockworks, Gary Gensler, Chairman of the Securities and Exchange Commission (SEC), has described the agency's role in the crypto industry as a 'cop on the beat'. This statement was made during an interview with CNBC, following Robinhood's disclosure of receiving a Wells notice from the US securities regulator. Gensler emphasized the SEC's responsibility to ensure that entities dealing with securities comply with the law, providing necessary disclosures and protections to investors. Gensler argued that the crypto industry consists of various digital assets that are considered securities 'under the law of the land', as interpreted by the Supreme Court. He expressed concern that investors may not be receiving all the necessary information in the crypto sector. He compared crypto tokens to publicly traded stocks, questioning the lack of similar disclosures from these tokens. Gensler also expressed his belief that investors are not getting the required information in the crypto industry. If a crypto asset is classified as a security, he stated that it is necessary and required to provide this information. However, he did not directly address the allegations made against the SEC by Consensys in a lawsuit filed last month, nor did he comment on the alleged investigation around ether, Ethereum's native token. Gensler criticized the intermediaries in the crypto market, stating that they are generally conflicted and engage in practices that would not be permitted on the New York Stock Exchange. He referred to a lawsuit filed by Consensys, which claimed that the SEC had issued subpoenas regarding ETH. This lawsuit confirmed reports that the SEC was investigating the status of ETH, despite former SEC employees agreeing that ETH was not a security. The Commodities and Futures Trading Commission has labeled ETH a commodity. Finally, Gensler mentioned that ether ETFs are currently under consideration by the five-member commission. He assured that the commission will review the filings at the appropriate time.