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In a recent interview with CNBC, Securities and Exchange Commission (SEC) Chair <a href="https://bitcoinist.com/ethereum-insider-gensler-covert-eth-involvement/" target="_blank" rel="noopener ">Gary Gensler</a> reiterated his concerns regarding the crypto industry, emphasizing its alleged association with scams, fraud, and compliance issues within the broader market.&nbsp; 
<h2 id="compliance-with-securities-laws-in-crypto">Compliance With Securities Laws In Crypto</h2> 
Gensler began by <a href="https://www.cnbc.com/2024/05/07/cnbc-exclusive-cnbc-transcript-sec-chair-gary-gensler-speaks-with-cnbcs-andrew-ross-sorkin-on-squawk-box-today.html#:~:text=CNBC%20News%20Releases-,CNBC%20Exclusive%3A%20CNBC%20Transcript%3A%20SEC%20Chair%20Gary%20Gensler%20Speaks%20with,Sorkin%20on%20%E2%80%9CSquawk%20Box%E2%80%9D%20Today" target="_blank" rel="noopener nofollow">acknowledging </a>that while cryptocurrencies constitute a relatively small segment of the overall financial markets, they allegedly exert an “outsized” influence regarding scams, fraud, and problems due to non-compliance with existing securities laws.&nbsp; 
The SEC Chair stressed that many digital assets fall under the classification of securities according to interpretations by the US Supreme Court, making <a href="https://bitcoinist.com/trader-warns-sec-chair-gensler-should" target="_blank" rel="noopener ">compliance </a>with securities regulations a crucial aspect of the industry. 
The SEC Chair underlined the commission’s responsibility to safeguard investors and ensure that those soliciting investments in “securities” adhere to the law.&nbsp; 
Gnesler expressed concern over the “lack of required disclosures” and investor protections in the crypto space, drawing attention to the alleged “discrepancy” between the level of transparency provided by traditional public companies during earnings seasons and the limited disclosure practices of crypto assets. 
In his address, Gensler also raised concerns about “conflicts of interest” observed among intermediaries operating within the “centralized crypto market.”&nbsp; 
Gensler highlighted actions that would be considered “unacceptable” within traditional <a href="https://bitcoinist.com/sec-chair-genslers-stance-on-ethereum/" target="_blank" rel="noopener ">financial exchanges</a>, such as the New York Stock Exchange (NYSE), and emphasized the importance of preventing trading activities that work against the interests of investors but did not provide an example of these alleged practices. 
<h2 id="sec-s-position-on-ethereum-under-review">SEC’s Position On Ethereum Under Review</h2> 
Addressing allegations of misleading Congress regarding the SEC’s stance on Ethereum’s <a href="https://bitcoinist.com/ethereum-designated-as-commodity-by-cftc/" target="_blank" rel="noopener ">classification</a>, Gensler clarified that the commission accurately shares information during congressional hearings and refrains from discussing ongoing investigations or expressing opinions on compliance with the law.&nbsp; 
Gensler confirmed that the commission currently reviews the classification of cryptocurrencies like Ethereum as genuine securities tradable on exchanges. 
It’s worth noting that the SEC chairman previously <a href="https://bitcoinist.com/bitcoin-is-a-commodity-sec-chair-crypto-regulation/" target="_blank" rel="noopener ">suggested </a>that only Bitcoin holds the commodity classification, leaving other cryptocurrencies, including Ethereum, outside of this designation. 
The SEC Chair further discussed the recent volatility and unconventional trading patterns exhibited by stocks like Trump Media and meme stocks. Gensler underscored the SEC’s role in ensuring that investors receive accurate and complete information, regardless of the purpose behind their investments.&nbsp; 
He concluded that while individuals have the freedom to form their own views based on accurate disclosures, market manipulation and misleading the public are strictly prohibited. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/yLKj0qxK/" alt="Crypto" width="1815" height="858"> 
As of the latest update, Ethereum is trading at $3,066, reflecting a 2.8% increase over the past week. However, the token has experienced a marginal decline of 0.5% in the last 24 hours, with its price potentially depending on the ability of the $3,000 support level to prevent further downward movement. 
Featured image from Shutterstock, chart from TradingView.com&nbsp;

SEC Chair Gensler: Crypto Represents ‘Outsized’ Share Of Scams And Fraud In Overall Markets

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