During a recent appearance On CNBC, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, noted that many assets are securities under the law.
During a recent appearance On CNBC, Gary Gensler, chairman of the U.S. Securities and Exchange Commission, noted that many assets are securities under the law.
“Many of these tokens are securities under the law of the land (as interpreted by the US Supreme Court). Therefore, we follow that law,” he emphasized.
The SEC chief went on to say that investors are not receiving the required information about those assets.
Gensler described cryptocurrencies as a “small piece” of global markets. At the same time, he says it is a “huge piece” of “scams and frauds.”
“Much of this field does not meet the protections of our securities laws,” Gensler emphasized.
Addressing Wells’ notice of the SEC’s Robinhood Markets, Gensler emphasized that the agency has “a really important responsibility” as police on the ground to make sure investors who purchase securities get proper disclosures and protections.
The SEC has been harshly criticized by the Chamber of Digital Commerce for targeting Robinhood’s crypto business, criticizing its recent move as an “unchecked regulatory overreach.”
In addition to Robinhood, the SEC is currently involved in legal battles with many other industry heavyweights, including Coinbase and Ripple.
Ethereum backer Consensys recently turned the tables on the SEC by suing the agency over its intention to classify Ether as a security. During the interview, Gensler once again dodged a question about the legal status of the second-largest cryptocurrency.
