SEC Chairman Gary Gensler’s recent interview with CNBC has sparked a global frenzy across the cryptocurrency horizon. His insights on pressing issues such as Robinhood's Wells notice and the Ethereum security lawsuit, which could potentially lead to the formation of an ETH ETF, have garnered significant attention among crypto market participants.
SEC Chair on Cryptocurrency Regulation
In an interview with CNBC today, Gensler said that cryptocurrencies are only a small part of the U.S. market. However, it is being staged as a massive fraud and fraud in the trading field.
Gensler observes that a significant portion of the crypto space operates non-compliantly and violates protection and security laws, which is a cause for concern. He also notes that mainstream financial media tends to ignore the massive $110 trillion capital market, focusing instead on the smaller, more closely monitored parts of the market under regulators' oversight. He pointed out that there is a trend.
At the same time, CNBC spoke about Robinhood receiving a Wells notice to X of Vlad Tenev (Robinhood CEO and co-founder) aimed at accusing the US SEC of stifling crypto innovation. spotlight on the post. In this regard, Gensler noted the Coinbase CEO and co-founder's “welcome to the club” response to Tenev's post.
The Chairperson responded that the US SEC has a watchdog responsibility to ensure appropriate regulation surrounding entities providing securities trading services. The Wells Notice is proof of this and was therefore issued against Robinhood. Meanwhile, Gensler also argued that many tokens are securities under local law, adding to the speculation surrounding Ethereum while looking to issue a Wells notice against Robinhood.
Also read: Revolut unveils UK cryptocurrency exchange amid surge in digital assets
Gensler talks about Ethereum's security situation
Meanwhile, when asked about the US SEC's view on Ethereum's future status as a security, Gensler declined to give a definitive answer, saying investor protection remains his top priority. Currently, U.S. investors are under-disclosing and intermediating this market, Gensler said.
These comments regarding the future status of Ethereum as a security leave a veil of uncertainty and could potentially impact the launch of the ETH ETF. Meanwhile, Gensler also justified his claim that he misled Congress in an interview with CNBC.
Also read: Just in: Shiba Inu (SHIB) bag Nexo listed, will SHIB price rise?
