Ethereum 2.0

Chair

Gary

Squawk

Following multiple Wells notices, SEC Chair Gary Gensler shared rhetoric regarding the crypto industry and its supposed non-compliance with federal laws. 
On May 7, the U.S. SEC Chair told a CNBC <a href="https://twitter.com/SquawkCNBC" target="_blank" rel="">Squawk Box</a> host that crypto businesses failed to comply with disclosure requirements synonymous with America’s financial markets.&nbsp; 
Gensler maintained his status quo on crypto assets and insisted that existing policies provide sufficient oversight for the nascent digital currency industry.&nbsp; 
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 “Without pre-judging any one of them, many of those tokens are securities under the law of the land as interpreted by the U.S. Supreme Court.” <cite>Gary Gensler, SEC Chair</cite>
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<h2 class="wp-block-heading" id="gary-gensler-ducks-question-on-ethereum-s-security-status">Gary Gensler ducks question on Ethereum’s security status&nbsp;</h2> 
The SEC Chair, in the usual fashion, refrained from categorically stating whether the Wall Street regulator classifies Ether (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="">ETH</a>) as a security or if investors can expect a spot Ethereum ETF soon.&nbsp; 
Instead of clarifying where ETH falls, security or commodity, Gensler stated that crypto intermediaries operating in a rather centralized market economy constantly engage in activities that regulated sectors like the New York Stock Exchange would be prohibited from.&nbsp; 
Gensler CNBC’s interview comes during several agency crackdowns on crypto businesses. Service providers like <a href="https://crypto.news/consensys-sues-sec-over-ethereum-crackdown/" target="_blank" rel="">Consensys</a>, <a href="https://crypto.news/sec-issues-wells-notice-to-robinhood-crypto/" target="_blank" rel="">Robinhood</a>, and <a href="https://crypto.news/sec-serves-wells-notice-to-uniswap/" target="_blank" rel="">Uniswap</a> received Wells notices, indicating the SEC’s intention to file lawsuits. 
 You might also like: <a href="https://crypto.news/the-digital-chamber-criticizes-sec-over-wells-notice-to-robinhood-crypto/" rel=""> The Digital Chamber criticizes SEC over Wells notice to Robinhood Crypto </a> 
The regulation by enforcement action tactic has prompted entities like <a href="https://crypto.news/bitwise-cio-secs-hostile-regulatory-environment-benefits-coinbase/" target="_blank" rel="">Coinbase</a> and Consensys to stage legal protests against Gensler’s commission, alleging that the regulator has refused to provide clear rules for the crypto market.&nbsp; 
Meanwhile, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam has publicly said that Ether, like Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="">BTC</a>), qualifies as a commodity. The CFTC also moved to <a href="https://crypto.news/crypto-regulation-cftc-congress/" target="_blank" rel="">establish</a> itself as the leading voice on U.S. crypto regulation and oversight.&nbsp; 
While the CFTC has affirmed its stand on the matter, and Gensler’s commission continues litigation against the digital asset industry, members of Congress have espoused doubts regarding the SEC’s approach.&nbsp; 
A document from last year revealed an investigation into Ethereum 2.0 and <a href="https://crypto.news/sec-has-considered-ethereum-a-security-for-extended-period/" target="_blank" rel="">suggested</a> that Gensler has viewed the second-largest crypto asset as a security for at least a year.&nbsp; 
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 <a href="https://twitter.com/hashtag/ICYMI?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#ICYMI</a>: New court filings indicate that <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="">@SECGov</a> Chair Gary Gensler knowingly misled Congress when pressed on the classification of <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">#ETH</a> at a <a href="https://twitter.com/FinancialCmte?ref_src=twsrc%5Etfw" target="_blank" rel="">@FinancialCmte</a> hearing to conduct oversight of his agency. 📖 Read my full statement 👇 <a href="https://t.co/8osMpbY6Iu" target="_blank" rel="">pic.twitter.com/8osMpbY6Iu</a>— Patrick McHenry (@PatrickMcHenry) <a href="https://twitter.com/PatrickMcHenry/status/1785317163110130028?ref_src=twsrc%5Etfw" target="_blank" rel="">April 30, 2024</a>
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 Read more: <a href="https://crypto.news/battle-for-ethereum-etfs-turns-messy-in-the-us-whats-next/" rel=""> Battle for Ethereum ETFs turns messy in the US — what’s next? </a>

Gary Gensler: Crypto operators not providing adequate disclosures

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