Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), believes US crypto investors are not receiving enough information about most digital assets.
The SEC recently sent a Wells Notice to Robinhood’s crypto division, warning the retail trading giant that it plans to take legal action against them.
In a recent interview with CNBC, Gensler said he can’t speak to specific companies, but that a significant portion of the crypto sector is not compliant with securities laws.
“In the realm of crypto assets, without prejudging any of those, many of those tokens are securities under the laws of the land as interpreted by the U.S. Supreme Court. So we follow that law, and you, the investors, are not getting the required or necessary disclosures on those assets.”
Robinhood CEO Vlad Tenev went to X earlier this week to denounce the SEC’s planned action against Robinhood Crypto.
“Over the past three years, we have reached a state of scrutiny that is harmful to American businesses and consumers.
The SEC’s continued attack on cryptocurrencies, coupled with recent regulatory proposals such as those related to predictive data analytics, mark yet another inappropriate attempt by the administrative state to stifle innovation.”
In his new interview, Gensler also avoided answering the question of whether Ethereum (ETH) is a commodity or a security, and instead spoke in broad terms about the sector.
“To me, the fundamental question is, “How do we ensure that the American investor is protected?” And right now they’re not getting the required or necessary disclosures, and the intermediaries at the center of this fairly centralized market are generally conflicted when it comes to doing things that we would never let the New York Stock Exchange do. The New York Stock Exchange should not trade against investors.”
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