The U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has once again taken aim at the cryptocurrency market, stating that it could use some “disinfectant.” Gensler made these comments during a conference at Columbia Law School, where he emphasized the importance of disclosures in financial markets.
Gensler highlighted the need for disclosures about climate and cyber threats, among other factors, stating that these disclosures protect investors and lead to more efficient markets. He pointed out that there are participants in the crypto securities markets who are trying to avoid registration requirements, which ultimately leads to a lack of mandatory disclosure.
The SEC Chair has been vocal about the need for cryptocurrency exchanges to register with the regulatory body and for crypto businesses to adhere to the same regulations as traditional financial institutions. The SEC has filed charges against several companies in the past year for operating unlicensed exchanges, brokers, dealers, and clearinghouses.
Gensler’s comments come at a time when the SEC is increasing its regulatory scrutiny of the cryptocurrency market, with a focus on disclosures related to climate change, cyber risks, and executive compensation. He emphasized the importance of disclosures in the crypto market and noted that both the SEC and the Commodity Futures Trading Commission (CFTC) are responsible for regulating cryptocurrency.
Overall, Gensler’s remarks serve as a reminder of the importance of transparency and regulation in the cryptocurrency market. As the industry continues to evolve, it will be crucial for companies to comply with regulatory requirements to protect investors and ensure the integrity of the market.
