Bitrabo Editorial
During a recent interview with CNBC, Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), reiterated his concerns about the crypto industry. He highlighted the industry’s alleged involvement in scams, fraud, and compliance issues within the larger market.
Adhering to Securities Laws in Crypto
Gensler pointed out that while cryptocurrencies make up a small portion of the overall financial markets, they have a significant impact on scams, fraud, and compliance problems. He emphasized the importance of complying with existing securities laws, as many digital assets are considered securities under US Supreme Court interpretations.
The SEC Chair emphasized the commission’s duty to protect investors and ensure that those seeking investments in “securities” follow the law.
Gensler expressed concerns about the lack of necessary disclosures and protections for investors in the crypto space. He mentioned the disparity in transparency between traditional public companies and crypto assets.
In addition, Gensler flagged potential conflicts of interest among intermediaries in the centralized crypto market, highlighting the need to prevent trading behaviors that could harm investors.
Gensler also touched on the SEC’s stance on Ethereum, clarifying that the commission provides accurate information during congressional hearings and refrains from discussing ongoing investigations or offering opinions on legal compliance.
The SEC is currently reviewing the classification of cryptocurrencies like Ethereum as genuine securities. Previously, Gensler had indicated that only Bitcoin was classified as a commodity.
Furthermore, Gensler discussed the recent volatility and unusual trading patterns observed in stocks like Trump Media and meme stocks. He stressed the SEC’s role in ensuring investors receive reliable and complete information.
Gensler emphasized the importance of preventing market manipulation and misinformation, underscoring the prohibition of such practices.
As of the latest data, Ethereum’s trading value is $3,066, showing a 2.8% increase over the week. However, the token has experienced a slight 0.5% decrease in the past 24 hours, with its price potentially influenced by the $3,000 support level.
Image source: Shutterstock, chart from TradingView.com