Gary Gensler Criticizes Lack of Crypto Asset Disclosure

Amidst the scrutiny of cryptocurrency firms, SEC Chairman Gary Gensler has expressed concerns that investors are not receiving sufficient information about digital assets. This was reported by The Block, citing the official’s interview with CNBC.

Journalists inquired about the Wells notice issued to the crypto division of online broker Robinhood. The head of the Commission replied that he could not discuss the matter publicly.

“Stepping away from the realm of cryptocurrencies, without prejudging anyone, many tokens are securities under the country’s laws as interpreted by the U.S. Supreme Court. Thus, we adhere to this law, and you, investors, are not receiving the necessary information about these assets,” he asserts.

Besides Robinhood, in recent months, the SEC has also issued notices to ConsenSys and Uniswap.

When asked whether Ethereum is a security or a commodity, Gensler also refrained from a direct answer:

“For me, the fundamental issue is how we can ensure the protection of American investors. Right now, they are not receiving the required or necessary information, and intermediaries at the center of this rather centralized market are generally in conflict and doing things we would never allow the New York Stock Exchange to do.”

In conclusion, the SEC Chairman added that the matter of a spot Ethereum ETF is under review.

In April, the agency postponed its decision on Franklin Templeton’s spot Ethereum ETF, with a deadline set for June 11. Prior to this, the regulator delayed the date for BlackRock’s instrument.

On May 7, the regulator extended the review period for applications from Invesco and Galaxy.