Regulation
Crypto operators do not provide adequate information
Following several Wells notices, SEC Chairman Gary Gensler shared his rhetoric regarding the crypto industry and its alleged non-compliance with federal laws.
On May 7, the chairman of the US SEC told CNBC Scream box host that crypto companies have failed to comply with disclosure requirements synonymous with US financial markets.
Gensler maintained his status quo on crypto assets and insisted that existing policies provide sufficient oversight of the nascent digital currency sector.
“Without prejudging any of these, many of these tokens are securities under the law of the land as interpreted by the United States Supreme Court.”
SEC Chairman Gary Gensler
Gary Gensler evades questions about the security state of Ethereum
The SEC chairman, as usual, refrained from categorically stating whether the Wall Street regulator classified Ether (ETH) as a security or if investors can expect a spot Ethereum ETF soon.
Instead of clarifying where ETH, security or commodities stand, Gensler said crypto intermediaries operating in a rather centralized market economy are constantly engaging in activities that regulated industries like the New York Stock Exchange would prohibited.
Gensler’s CNBC interview comes amid several agency crackdowns on crypto companies. Service providers like Consensys, Robin HoodAnd Uniswap received notices from Wells, indicating the SEC’s intent to file suit.
The tactic of enforcement regulation has incentivized entities like Coinbase and Consensys to mount legal protests against the Gensler commission, alleging that the regulator refused to provide clear rules for the crypto market.
Meanwhile, Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam publicly stated that Ether, like Bitcoin (BTC), is considered a commodity. The CFTC also moved to establish positions itself as the leading voice on crypto regulation and oversight in the United States.
While the CFTC has asserted its position on the issue and the Gensler Commission continues litigation against the digital asset industry, members of Congress have expressed doubts about the SEC’s approach.
A document from last year revealed an investigation into Ethereum 2.0 and suggested that Gensler has viewed the second-largest crypto asset as a security for at least a year.