Securities and Exchange Commission (SEC) Chairman Gary Gensler has expressed concern about the lack of disclosure regarding cryptocurrencies, especially after a number of crypto companies received warnings of enforcement action.
In response to the recent Wells notice on Robinhood Crypto, Gensler stressed in an interview with CNBC that many cryptocurrency tokens can be considered securities under existing legal frameworks.
Robinhood announced on Monday that SEC staff has elected to recommend enforcement action against its cryptocurrency subsidiary due to alleged securities violations.
He emphasized how important it is for investors to have full disclosure about these assets, saying, “We can take a step back from the field of crypto assets and, without any preconceptions, consider those tokens. Many of these are securities based on local laws.” Interpreted by the United States Supreme Court. ”
“So while we are following that law, investors are not receiving the required or necessary disclosures about those assets,” he told CNBC.
Uniswap and Consensys are two other crypto companies that have received notices similar to Robinhood's Wells Notice in recent weeks. Two crypto exchanges, Binance and Coinbase, are embroiled in a legal dispute with the SEC.
Additionally, Gensler avoided fully classifying Ether as a security or commodity, instead focusing on the importance of investor safety and accurate disclosure.
Gensler pointed out the need for more information disclosure in the current cryptocurrency market and emphasized the importance of protecting U.S. investors. He criticized intermediaries for potential conflicts of interest and practices that would not be tolerated on a traditional stock exchange like the New York Stock Exchange.
Although the SEC does not classify ether, CFTC Chairman Rostin Behnam considers it a commodity. This ambiguity has hampered efforts to launch an Ether ETF, with prospects for approval fading ahead of the May deadline. Gensler asserted that the issue is under the committee's scrutiny.
Also read: Cryptocurrency lawyer accuses SEC of abuse of power in Wells notice
