In a recent interview with CNBC, the head of the Securities and Exchange Commission (SEC). Gary Gensler He reiterated his concerns about the cryptocurrency industry, highlighting its alleged connection to scams, fraud and compliance issues within the broader market.
Compliance with cryptocurrency securities laws
Gensler started with Recognition That although cryptocurrencies make up a relatively small part of financial markets overall, they exert a “significant” influence in terms of scams, fraud and problems due to non-compliance with existing securities laws.
The head of the SEC stressed that many digital assets fall under the classification of securities according to the interpretations of the US Supreme Court. compliance With securities regulations a crucial aspect of the industry.
The head of the Securities and Exchange Commission stressed the committee's responsibility to protect investors and ensure that those who request investments in “securities” comply with the law.
Gnisler expressed concern about the “lack of required disclosures” and investor protection in the cryptocurrency space, and drew attention to the alleged “inconsistency” between the level of transparency provided by traditional public companies during earnings seasons and their limited disclosure practices for crypto assets.
In his letter, Gensler also raised concerns about “conflicts of interest” observed among brokers operating within the “centralized cryptocurrency market.”
Gensler highlighted actions that could be considered “unacceptable” within traditional practices Financial exchangessuch as the New York Stock Exchange (NYSE), stressed the importance of preventing trading activities that work against investors' interests but did not provide an example of these alleged practices.
The SEC's position on Ethereum is under review
Address allegations of misleading Congress regarding the SEC's position on Ethereum classificationGensler explained that the committee diligently shares information during congressional hearings and refrains from discussing ongoing investigations or expressing opinions on compliance with the law.
Gensler confirmed that the committee is currently reviewing the classification of cryptocurrencies such as Ethereum as real securities tradable on exchanges.
It is worth noting that the former Chairman of the Supreme Education Council Proposal Only Bitcoin has a commodity classification, leaving other cryptocurrencies, including Ethereum, outside of this classification.
The SEC chairman also discussed the recent volatility and unconventional trading patterns exhibited by stocks like Trump Media and meme stocks. Gensler emphasized the SEC's role in ensuring that investors receive accurate and complete information, regardless of the purpose of their investments.
It concluded that while individuals are free to form their own views based on accurate disclosures, market manipulation and misleading the public is strictly prohibited.
As of the latest update, Ethereum is trading at $3,066, reflecting a 2.8% increase over the past week. However, the token has seen a marginal decline of 0.5% over the past 24 hours, with its price likely to depend on the ability of the $3,000 support level to prevent further downward movement.
Featured image from Shutterstock, chart from TradingView.com