U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has criticized participants in the cryptocurrency industry, claiming they are circumventing some regulatory registration requirements.
In a prepared speech delivered to Columbia Law School on March 22, Gensler criticized the regulatory oversight approach of crypto companies in his closing remarks. The SEC chairman supported the benefits of mandatory disclosure for market participants, quoting Supreme Court Justice Louis Brandeis, who said, “Sunlight is the best disinfectant.''
“[T]”There are still people here who are trying to undermine the SEC's disclosure regime,” the SEC chairman said. “The crypto securities market has participants who try to circumvent these registration requirements. No registration means no mandatory disclosure. I would agree that we can use disinfectants.”
Gensler's comments come as the SEC pursues multiple enforcement actions against major cryptocurrency companies including Kraken, Binance, Ripple, and Coinbase. Many cryptocurrency companies and advocacy groups are calling on the SEC to establish clear rules to preserve innovation in the United States.
Related: Senators pressure SEC Gensler not to approve any more crypto ETFs
According to reports, the commission issued the subpoena as part of a campaign to ultimately classify Ether (ETH) as a security within the SEC's purview. Over the past two years, the commission has moved into approving crypto-linked exchange-traded products for U.S. exchanges, including investment vehicles tied to ETH and Bitcoin (BTC) futures; It also includes the first spot BTC exchange-traded fund, which was launched in March.
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