After several notices from Wells, SEC Chairman Gary Gensler shared a letter regarding the cryptocurrency industry and its supposed non-compliance with federal laws.
On May 7, the head of the US Securities and Exchange Commission told CNBC Squawk box Adding that cryptocurrency companies have failed to comply with disclosure requirements synonymous with US financial markets.
Gensler maintained his status quo regarding crypto assets and insisted that existing policies provide adequate oversight of the nascent cryptocurrency industry.
“Without prejudging any of them, many of these tokens are securities under the law of the land as interpreted by the US Supreme Court.”
Gary Gensler, Chairman of the Securities and Exchange Commission
Gary Gensler questions the security posture of Ethereum
The SEC chief declined, in usual fashion, to definitively say whether the Wall Street regulator classifies Ethereum (ETH) as a security or whether investors can expect an Ethereum exchange-traded fund soon.
Instead of clarifying where ETH is located, whether it is securities or commodities, Gensler stated that cryptocurrency brokers operating in a fairly centralized market economy are constantly engaging in activities that regulated sectors such as the New York Stock Exchange are prohibited from doing.
Gensler's CNBC interview comes during several crackdowns on cryptocurrency companies by agencies. Providers such as Consensys, Robinhood, and Uniswap have received Wells Notices, indicating the SEC intends to file lawsuits.
The regulation through enforcement action tactic has prompted entities such as Coinbase and Consensys to organize legal protests against Gensler's commission, alleging that the regulator has refused to provide clear rules for the cryptocurrency market.
Meanwhile, Commodity Futures Trading Commission (CFTC) Chairman Rustin Behnam has publicly said that Ethereum, like Bitcoin (BTC), qualifies as a commodity. The CFTC has also moved to establish itself as the leading voice in regulating and monitoring cryptocurrencies in the United States.
While the CFTC has reiterated its position on the matter, and the Gensler Commission continues to file lawsuits against the digital asset industry, members of Congress have embraced skepticism about the SEC's approach.
A document from last year revealed an investigation into Ethereum 2.0 and suggested that Gensler viewed the second-largest cryptocurrency asset as securities for at least a year.