Securities and Exchange Commission (SEC) Chairman Gary Gensler reiterates his position on the need for transparency in crypto markets, suggesting that crypto markets could benefit from some “sanitizer” did.
Speaking at a Columbia Law School conference on Friday, Gensler emphasized the importance of disclosure in financial markets, including information related to climate and cyber risks. He argued that information disclosure contributes to market efficiency and protects investors' interests.
In his prepared remarks, Gensler noted that some participants in the crypto securities market are attempting to circumvent registration requirements, resulting in a lack of mandatory disclosure. He suggested that greater transparency could improve the health of the crypto market.
Gensler has consistently emphasized that crypto companies must adhere to the same regulatory standards as traditional financial institutions. Over the past year, the SEC has taken action against platforms such as Coinbase and Kraken for operating without proper registration.
The SEC has recently focused on disclosure, and Gensler emphasizes the importance of disclosures related to executive compensation, climate risk, and cyber risk. Earlier this month, the SEC passed a rule requiring companies to disclose climate-related risks.
During the Q&A, Gensler emphasized the role of both the SEC and the Commodity Futures Trading Commission (CFTC) in regulating cryptocurrencies. He acknowledged that authorities have different views on whether certain cryptocurrencies like Ether should be classified as securities or commodities.
Although there appears to be some disagreement between the SEC and CFTC regarding the classification of Ether, Gensler and CFTC Chairman Behnum maintain regular communication to ensure effective regulation. . Although Behnum has said that Ether is a commodity, the SEC's position on this issue remains unclear.
Behnam also expressed concern that conflicting classifications could create compliance challenges for market participants. If the SEC classifies Ether as a security, it could violate CFTC regulations and could impact registrants that list Ether as a futures contract.
Featured image: Freepik
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