U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has criticized participants in the cryptocurrency industry for circumventing regulatory registration requirements.
In the closing remarks, Lecture at Columbia University Law SchoolMr. Gensler emphasized the importance of disclosure obligations to market participants, referring to Supreme Court Justice Louis Brandeis's statement that “sunlight is said to be the best disinfectant.''
Mr. Gensler expressed concern that some participants in the virtual currency securities market are attempting to circumvent registration requirements, resulting in a lack of disclosure requirements.
He emphasized the need for transparency in the crypto market and suggested that some sanitizing measures could benefit the industry.
Gary Gensler launches war against crypto companies
Over the past year, the SEC has filed numerous lawsuits against crypto companies, and SEC Chairman Gary Gensler has consistently argued that most cryptocurrencies should be classified as securities. There is.
For one thing, government agencies have filed civil lawsuits. vs. Sam Bankman FreedCo-founder of FTX.
In addition to the lawsuit against Bankman Freed, the SEC has also filed lawsuits against other major crypto players. Binance, CEO Zhao Changpengand coinbase.
Many industry participants and advocacy groups are calling on the SEC to establish clear regulatory guidelines to foster innovation in the United States.
The SEC reportedly potentially Classifying Ethereum (ETH) as a security within its regulations.
“[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 attempt to circumvent these registration requirements. No registration means no mandatory disclosure. I would agree that we can use disinfectant.”
The SEC has made progress in recent years approving investment vehicles related to ETH and Bitcoin futures, as well as cryptocurrency-related ETF products for U.S. exchanges, including the first Spot Bitcoin ETF in January.
SEC postpones decision on futures ETH ETF
In a separate development, the SEC has once again extended the deadline to approve Grayscale's Ethereum Futures Trust exchange-traded fund (ETF).
SEC The previous deadline has been announced The event scheduled for March 31st will be postponed to May 30th.
The ETF proposed by digital asset management firm Grayscale aims to invest in Ethereum futures contracts.
The SEC's decision to extend the deadline follows a December 2023 postponement that sought additional public comment on whether the ETF should be listed.
Grayscale had proposed to list and trade shares of the Ethereum Futures Trust ETF under Alkar Rule 8.200-E on the New York Stock Exchange in September 2023.
Bloomberg ETF analyst James Seifert suggested that Grayscale may be using the futures ETF filing as a strategic move to influence the SEC's decision on approval of the Spot Ether ETF.
If the SEC approves Grayscale's futures ETF, it could strengthen Grayscale's case for approval of its Spot Ether ETF application.
Additionally, the SEC also postponed a decision on whether to approve Grayscale's Spot Ether ETF, opening a request for public comment on January 25th.
