The head of the U.S. Securities and Exchange Commission (SEC) has criticized crypto exchanges, stating that they are engaging in practices that would never be allowed on the New York Stock Exchange (NYSE).
During a recent interview on CNBC’s Squawk Box, SEC Chair Gary Gensler expressed concerns that crypto exchange platforms are not providing investors with the necessary disclosures required by law and may be trading against consumers.
Gensler emphasized the importance of transparency in securities markets, highlighting the role of regulatory oversight in protecting investors. He pointed out that unlike traditional exchanges, crypto platforms are failing to provide adequate disclosure to investors and may be engaging in trading practices that are prohibited in traditional markets.
In addition, Gensler discussed the approval process for spot Ethereum (ETH) exchange-traded funds (ETFs), noting that while the SEC has approved Bitcoin (BTC) ETFs in the past, the approval of ETH ETFs may take some time.
While acknowledging the growing interest in crypto assets, Gensler emphasized the need for investors to exercise caution and conduct thorough research before making investment decisions. He cautioned against high-risk investments in Bitcoin, cryptocurrency, or digital assets, reminding investors that any losses incurred are their responsibility.
As the SEC continues to monitor the crypto market, Gensler urged investors to stay informed and vigilant, emphasizing the importance of due diligence and risk management in the volatile world of digital assets.
