tl;dr
The U.S. Securities and Exchange Commission, under the leadership of Chair Gary Gensler, is intensifying its scrutiny of the crypto industry. Robinhood Crypto and Ethereum software firm Consensys have been served notice of impending enforcement action. Gensler emphasized the prevalence of scams and ...
SEC's Gary Gensler has highlighted the prevalence of scams and fraud in the crypto market, expressing the belief that most cryptocurrencies should be considered securities. He also refused to comment on the Ethereum lawsuit and internal SEC classification, emphasizing the lack of investor disclosures in the crypto space.
The U.S. Securities and Exchange Commission, led by Chair Gary Gensler, is intensifying its scrutiny of the crypto industry. Notably, Robinhood Crypto and Ethereum software firm Consensys have been served notice of impending enforcement action. Gensler stressed the widespread occurrence of scams and noncompliance with securities laws in the crypto market, leading to significant attention from the financial media. He contends that most cryptocurrencies should be viewed as securities and investors lack sufficient disclosures when investing in such assets.
The SEC's crackdown on the crypto industry is ongoing, with Robinhood Crypto being the latest addition to the list of companies facing impending enforcement action. Gensler, speaking on CNBC's "Squawk Box," declined to delve into specifics regarding the Robinhood case or others. He attributed the SEC's focus on crypto to the financial media and crypto journalists, as well as the disproportionately high incidence of financial scams and fraud in the crypto market.
Gensler pushed back against the notion of the SEC's attention being primarily directed towards crypto, emphasizing the media's focus on the subject. He also refrained from commenting on the recent lawsuit from Consensys regarding Ethereum, which filed a preemptive suit against the agency following a Wells Notice over its MetaMask crypto wallet.
While Gensler affirmed his belief that most cryptocurrencies should be considered securities, he also highlighted the inadequacy of investor disclosures in the crypto space. He underscored the significant losses suffered by individuals in the crypto field and emphasized the necessity for investors to have comprehensive and truthful information when making investment decisions.
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