SEC
chair
Gary
Gensler
reaffirmed
previous
criticisms
of
the
crypto
industry,
stating
that
the
sector
is
highly
centralized
with
“significant
non-compliance”
in
a
Bloomberg
interview
on
June
25.
He
downplayed
decentralization
in
the
sector,
stating
that
a
few
platforms
are
“centralizing
and
commingling
things
that
we
would
never
allow
anywhere
else.”
Gensler
listed
specific
violations
such
as
trading
against
customers,
trading
in
front,
and
taking
investments
in
a
contract
before
listing.
He
noted
that
many
“leading
lights”
of
the
crypto
sector
are
in
jail
or
awaiting
jail,
adding:
“I
say
this
and
you
giggle…but
this
is
a
serious
thing
…
not
ticky
tacky
…
It’s
about
real
protections
for
investors.”
Gensler
said
non-compliance
extends
beyond
securities
laws
to
the
Bank
Secrecy
Act,
the
Commodity
Exchange
Act,
and
anti-money
laundering
laws.
Tokens
are
largely
securities
Gensler
said
that
many
crypto
platforms
work
with
a
significant
number
of
tokens
that,
without
prejudging,
are
securities
under
the
“law
of
the
land”
and
the
Supreme
Court’s
stance.
The
comments
echo
Gensler’s
earlier
statements
on
most
cryptos
being
securities.
He
emphasized
that
tokens
are
offered
as
investment
contracts
and
said
the
US
public
is
not
receiving
disclosures
required
by
law.
He
noted
that
intermediaries,
such
as
crypto
exchanges
and
broker-dealers,
handle
hundreds
of
assets,
adding:
“How
many
of
those
offerings
don’t
have
some
group
of
entrepreneurs
in
the
middle?
It’s
sort
of
belies
logic.”
Gensler
said
the
issue,
combined
with
non-compliance,
has
led
the
SEC
to
bring
legal
cases
against
numerous
firms
because
violations
harm
the
general
public.
Gensler
evades
political
questions
Gensler
declined
to
answer
political
questions,
including
about
Mark
Cuban‘s
earlier
supposition
that
Gensler’s
crypto
policies
could
cost
Joe
Biden
the
election.
Gensler
simply
stated:
“I
don’t
speak
about
elections.”
Gensler
also
refused
to
comment
on
whether
he
is
surprised
by
the
broader
political
movement
around
crypto,
saying:
“Other
people
can
speak
about
elections.”
Gensler
did
not
state
whether
spot
Ethereum
ETFs
might
receive
final
approval
in
the
coming
weeks
or
before
elections
but
said
the
process
is
going
“smoothly.”
Mentioned
in
this
article
In:
US,
Regulation
Go to Source
Author: Mike Dalton
