Gary Gensler, Chairman of the SEC, stated during a speech at Columbia Law School that cryptocurrency companies need “a little disinfectant.” This was reported by The Block.
He noted that disclosure by financial companies ensures market efficiency and investor protection, yet some in the crypto industry seek to evade registration requirements.
“A lack of registration means a lack of mandatory disclosure. Many would agree that the crypto market could use a little disinfectant,” Gensler stated.
Over the past year, the SEC has filed lawsuits against major bitcoin exchanges Binance, Coinbase, and Kraken. The platforms were accused of, among other things, violating securities laws.
Coinbase has been urging the regulator to develop clear rules for the industry for several years. In July 2022, the company filed a petition with the SEC, and in April 2023, it turned to the courts. Gensler dismissed the complaints, stating that existing laws apply to digital assets.
In March 2024, a Coinbase support group called on the SEC to implement rules for the crypto industry.
Earlier, Gensler compared bitcoin to a rollercoaster, reminding of the high volatility of the first cryptocurrency and urging investors to exercise caution.