U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler believes that American crypto investors are not being adequately informed about the majority of digital assets. Recently, the SEC issued a Wells Notice to Robinhood’s crypto division, notifying the retail trading giant of its intention to take legal action against them. In a recent interview with CNBC, Gensler stated that while he cannot comment on specific companies, he considers a significant portion of the crypto industry to be non-compliant with securities laws.
Gensler emphasized that many crypto assets can be classified as securities under U.S. Supreme Court interpretations of the law. As a result, the SEC adheres to this legal framework, but investors are not receiving the necessary disclosures about these assets. Robinhood CEO Vlad Tenev expressed his discontent with the SEC’s planned action against Robinhood Crypto, stating that regulatory pressure is detrimental to American companies and consumers.
During the interview, Gensler declined to categorize Ethereum (ETH) as either a commodity or a security and instead discussed the sector broadly. He emphasized the importance of protecting American investors and highlighted the lack of required disclosures. Gensler also criticized the intermediaries in this centralized market, stating that they often have conflicts of interest that would not be allowed on the New York Stock Exchange.
It is important to note that the opinions expressed in The Daily Hodl are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are undertaken at one’s own risk, and any losses incurred are the individual’s responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Additionally, The Daily Hodl participates in affiliate marketing.
