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Securities and Exchange Commission Chairman Gary Gensler did not directly address whether Ethereum is a commodity or a security in an interview with CNBC on Tuesday. Instead, he shifted his focus to broader regulatory concerns, particularly the protection of U.S. investors and the conduct of intermediaries in the cryptocurrency market.
“What I want to say is a fundamental question for me. That's how Will American investors be assured of protection? And so far, they haven't disclosed the information that they need or need,” Gensler said on CNBC's “Squawk Box” in response to a question from Andrew Ross Sorkin about Ethereum's classification.
“And the intermediaries at the center of this fairly centralized market are In general It's contradictory and does something that the New York Stock Exchange would never tolerate.Trading is prohibited on the New York Stock Exchange To investors, Gensler said.
Legal status of Ethereum How Ether is classified is one of the key areas of debate, as it may indicate how Ether is regulated and whether Ether is included in traded funds such as ETFs. It is one. Unfortunately, Gensler did not provide a final answer.
In a brief comment on the possibility of a Spot Ethereum Exchange Traded Fund (ETF), the SEC Chairman said that the application is currently under consideration. He redirected the conversation away from specific results regarding the Ethereum ETF. The SEC's broader goals.
Although the SEC's position on Ether has not been made clear, the agency's alleged actions speak for themselves more More than words.
numerous reports show That agency trying Classifies Ether as a security.of Ethereum Foundation Survey Allegedly part of this.
Recent court filings moreover pointed out SEC considers Ethereum’s unregistered security For at least a year. Numerous subpoenas and document requests were sent to: Entities related to Ethereum.
Attention to virtual currencies is driven by the media
According to Gensler, Virtual currencies only make up a small portion of the financial market. However, it has received widespread attention from journalists due to its disproportionate number of scams, scams, and regulatory issues.
When asked why the SEC spent so much time on cryptocurrencies, given their modest market capitalization of $110, Gensler said that the focus on cryptocurrencies has been more due to media and media than to the SEC's agenda. He said it was driven by public interest.
“I've been on your show dozens of times. And all Shaw, you're asking about cryptocurrencies.and me Infer This means that the majority of the interviews will be about cryptocurrencies. Meanwhile, the capital market is $110 trillion. So it's also about where the financial media is. I’m focused.” gensler he claimed.
Gensler added that many tokens do not comply with the necessary protections required by these laws. This violation results in a lack of adequate disclosure and protection for investors.
The SEC commissioner also declined to discuss his oversight of various market participants, including Robinhood, which recently received a wells notice from the SEC. He just said that investors need protection and that the SEC's general role as a regulatory agency is to ensure compliance in securities transactions.
The SEC is facing backlash from members of the crypto community and members of Congress after it threatened to file a lawsuit against Robinhood's crypto division. Cryptocurrency critics argue that the SEC should be protecting investors rather than stifling crypto innovation, and that it is placing too much emphasis on the crypto industry.
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