SEC Chairman Warns ‘Many’ Crypto Assets Are Securities, Says Investors Are Not Getting Required Disclosures
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler believes U.S. cryptocurrency investors are not adequately informed about most digital assets.
The SEC recently sent a Wells Notice to Robinhood’s cryptocurrency arm, notifying it that it plans to take legal action against the retail trading giant.
In a recent interview with CNBC, Gensler said that while he could not speak on specific companies, he believes a significant portion of the cryptocurrency sector is non-compliant with securities laws.
“Without prejudice to anyone in the cryptocurrency asset space, most tokens are securities under the law of the land as interpreted by the U.S. Supreme Court. So we follow that law, and you as investors are not getting the disclosures that are required or needed for those assets.”
Robinhood CEO Vlad Tenev visited X earlier this week to criticize the SEC’s planned action against Robinhood Crypto.
“Over the past three years, we have reached a state of regulatory onslaught that is harmful to American businesses and consumers.
“The SEC’s ongoing attacks on cryptocurrencies, combined with recent rule proposals related to predictive data analytics, represent yet another inadequate attempt by the administration to stifle innovation.”
In a new interview, Gensler avoided answering the question of whether Ethereum (ETH) is a commodity or a security, instead talking about the sector in broad terms.
“To me, the fundamental question is, ‘How can we protect American investors?’ And right now, they’re not getting the required or necessary disclosures, and the brokers at the center of this somewhat centralized market are conflicted about doing things that the New York Stock Exchange would normally never allow. The New York Stock Exchange is not permitted to trade with investors.”
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SEC Chairman Warns ‘Many’ Crypto Assets Are Securities, Says Investors Are Not Getting the Information They Need. The reveal first appeared in The Daily Hodl.
