Securities and Exchange Commission Chairman Gary Gensler has given his latest thoughts on the industry, saying the cryptocurrency market could use some kind of “sanitizer.”
Speaking Friday at a Columbia Law School conference, Gensler spoke about the need and benefits of disclosure across financial markets, including climate change and cyber risk. Gensler said disclosure provides a more efficient market and ultimately protects investors.
“There are participants in the crypto securities market who seek to circumvent these registrations. Gensler said in prepared remarks: “No registration means no forced disclosure. Many would agree that the crypto market could use a little disinfectant.”
past warnings
Gensler has consistently warned that crypto exchanges must register with authorities. The same rules apply to crypto companies as traditional finance.
Over the past year, the SEC has charged Coinbase, Kraken, and others with operating as unregistered exchanges, brokers, dealers, and clearinghouses. Cryptocurrency companies, on the other hand, claim that it is impossible to register with the agency.
In his prepared remarks Friday, Gensler also focused on the need for disclosures on executive compensation, climate and cyber risk. The SEC voted to implement it earlier this month. rule Require companies to disclose climate-related risks.
CFTC's role
In the Q&A after his talk, Gensler said that cryptocurrencies are a reminder of the importance of disclosure. He also said that both the SEC and its fellow regulator, the Commodity Futures Trading Commission, have a role in regulating cryptocurrencies.
“If something doesn't have a group of entrepreneurs and a group that the people are counting on,” Gensler said. “They are [CFTC] It's also a great derivatives regulator, so Chairman Behnum and I speak regularly. ”
Recently, the two agencies have appeared to be at odds over whether Ether is a security under the jurisdiction of the SEC or a product under the jurisdiction of the CFTC. Behnum said Ether is a commodity, but the SEC is less clear.
Behnum told lawmakers earlier this month that if the SEC says Ether is a security, CFTC-registered companies that list Ether as a futures contract will be violating SEC rules, not CFTC rules. He said it would be.
Updated (March 22nd 18:00 UTC): Added Mr. Gensler's remarks regarding CFTC.
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