U.S. Securities and Exchange Commission Chairman Gary Gensler has again criticized the cryptocurrency market, saying it may need a “disinfectant.”
Gensler spoke at a conference at Columbia Law School on Friday about the benefits and necessity of disclosure across financial markets, including cyber and climate risks.
Gensler stressed that disclosure increases market efficiency and ultimately protects investors. In his prepared remarks, Gensler said, “There are participants in the cryptocurrency securities market who may seek to circumvent these registration requirements.”
He added: “No registration means no mandatory disclosure. Many would agree that the cryptocurrency market needs a bit of disinfectant.”
Gensler has frequently warned that crypto companies are bound by the same regulations as traditional finance, and crypto exchanges must register with authorities.
Over the past year, the SEC has accused Coinbase, Kraken and other companies of operating as unregistered exchanges, brokers, dealers and clearing houses, while the cryptocurrency companies have argued that they cannot register with the government.
In his prepared remarks Friday, Gensler also addressed the need for disclosures about executive pay, environmental issues and cyber risks, following the SEC's vote earlier this month to approve rules requiring companies to disclose risks related to climate change.
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