Chair

Gary

The <a href="https://thecoinrise.com/sec-chair-gensler-frustrated-by-crypto-focus-defends-regulatory-actions/" rel="noopener noreferrer nofollow">Securities and Exchange Commission (SEC) Chair</a> Gary Gensler emphasized the need for crypto companies to disclose more information about their tokens during a <a href="https://www.cnbc.com/video/2024/06/05/sec-chair-gary-gensler-on-new-t-1-settlement-cycle-market-manipulation-and-crypto-regulation.html" rel="noopener noreferrer nofollow">CNBC</a> interview on Wednesday.&nbsp;
His remarks notably omitted the usual assertion that “most” crypto tokens are securities, indicating a potential shift in regulatory perspective.
<h2 id="span-style-font-weight-400-gensler-addresses-the-need-for-transparency-span">Gensler Addresses the Need for Transparency</h2>
The statements from Gensler come amidst <a href="https://thecoinrise.com/gensler-comments-on-ftx-collapse-and-ongoing-crypto-bear-market/" rel="noopener noreferrer nofollow">evolving political dynamics in Washington</a>. Last month, the SEC approved spot Ether exchange-traded funds (ETFs), a significant development for the industry. Additionally, over 70 House Democrats recently voted in favor of crypto legislation, marking a symbolic victory for the crypto sector.
Addressing the need for better transparency, Gensler said,&nbsp;
“Right now, without prejudging anyone, these tokens, whether they’re the ones Jim [Cramer] listed or other tokens, have not given you the disclosures that you not only need to make your investment decisions.”&nbsp;
This comment came in response to CNBC host Jim Cramer’s query about the potential approval of spot ETFs for the BONK memecoin.
<h3 id="span-style-font-weight-400-gensler-refrained-from-categorizing-tokens-as-securities-span">Gensler Refrained from Categorizing Tokens as Securities</h3>
In contrast to his previous stance, Gensler refrained from categorizing most tokens as securities during this interview. Earlier this year, he had consistently stated that many of the 15,000 to 20,000 crypto tokens in existence could be considered investment contracts or securities, a classification fiercely contested by the industry.
Despite the <a href="https://thecoinrise.com/gary-gensler-hints-ethereum-merge-could-classify-eth-as-a-security/" rel="noopener noreferrer nofollow">softer tone on securities classification</a>, Gensler maintained a critical view of the crypto industry, likening it to the financial “Wild West.” He criticized crypto exchanges for practices that would be unacceptable in traditional financial markets, stating,&nbsp;
“These crypto exchanges, Jim? They’re doing things that we would never allow this New York Stock Exchange to do. Our laws won’t allow you to trade against your customers.”
<h2 id="span-style-font-weight-400-ongoing-legal-issues-span">Ongoing Legal Issues</h2>
Highlighting the industry’s regulatory challenges, Gensler pointed out that “Some of the most leading lights of this field are in jail, about to go to jail, or awaiting extradition.” This comment underscores ongoing legal and regulatory issues within the crypto space.
Gensler’s remarks suggest a nuanced approach to crypto regulation. By focusing on the need for better disclosure rather than outright labeling tokens as securities, he may be signaling a willingness to work more collaboratively with the industry. This shift could lead to a regulatory environment that balances investor protection with the innovative potential of cryptocurrencies.
The SEC’s recent approval of spot Ether ETFs and the bipartisan support for crypto legislation in the House reflect broader acceptance of the crypto industry within the political landscape. These developments suggest that while regulatory scrutiny remains, there is also recognition of the need to integrate crypto into the financial system responsibly.
The post <a href="https://thecoinrise.com/gensler-urges-greater-transparency-in-crypto-avoids-labeling-tokens-as-securities/" rel="noopener noreferrer nofollow">Gensler Urges Greater Transparency in Crypto, Avoids Labeling Tokens as Securities</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Gensler Urges Greater Transparency in Crypto, Avoids Labeling Tokens as Securities

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