Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), has criticized participants in the crypto industry for avoiding registration requirements with the regulator. In a speech given at Columbia Law School, Gensler expressed his disapproval of crypto firms’ approach to regulatory oversight. He emphasized the importance of mandatory disclosure for market participants, quoting Supreme Court Justice Louis Brandeis who famously said, “Sunlight is said to be the best of disinfectants.”
Gensler highlighted the fact that some participants in the crypto securities markets are seeking to evade registration requirements, which consequently means they are not obligated to disclose important information. He suggested that the crypto markets could benefit from greater transparency and regulation.
These remarks from Gensler come at a time when the SEC is actively pursuing enforcement actions against major crypto firms such as Kraken, Binance, Ripple, and Coinbase. Many crypto companies and advocacy groups have urged the SEC to establish clear regulatory guidelines in order to foster innovation within the United States.
Furthermore, it has been reported that the SEC has issued subpoenas as part of an effort to eventually classify Ether (ETH) as a security under its regulatory jurisdiction. Over the past two years, the commission has made progress in approving crypto-related exchange-traded products for U.S. exchanges, including investment vehicles tied to ETH and Bitcoin (BTC) futures, as well as the first spot BTC exchange-traded funds in January.
The question remains: Does SEC Chair Gary Gensler hold the final say in crypto regulation?