Ethereum

Chair

DeFi

Gary

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 U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has cautioned cryptocurrency exchanges that providing investor disclosures does not shield them from regulatory scrutiny.
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In a<a style="color: #0000ff;" 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"> recent interview with CNBC</a>, Gensler emphasized that disclosures are insufficient if crypto exchanges engage in market manipulation or disseminate misleading information affecting investment decisions.
Gensler pointed out that many crypto companies fail to provide any disclosures and operate in ways that would be unacceptable in traditional financial markets.
Following the<a style="color: #0000ff;" href="https://defi-planet.com/2022/12/ftx-crash-the-fastest-corporate-failure-in-the-american-history/" rel="noopener noreferrer nofollow"> collapse of cryptocurrency exchange FTX</a> in late 2022, the SEC has ramped up enforcement in the digital asset sector. The agency is currently involved in litigation against major U.S. crypto market players, including a high-profile<a style="color: #0000ff;" href="https://defi-planet.com/2023/06/us-sec-accuses-coinbase-of-operating-as-unregistered-securities-broker-exchange-and-clearing-agency-in-fresh-lawsuit/" rel="noopener noreferrer nofollow"> case against Coinbase</a>, the largest U.S. exchange by daily trading volume.
However, Gensler adopted a more flexible stance when discussing the potential for crypto ETFs, such as those involving the Solana memecoin BONK. This softer approach aligns with the SEC’s recent approval of spot Ethereum ETFs, a surprising move given previous views of Ethereum as an unregistered security.
The<a style="color: #0000ff;" href="https://defi-planet.com/2024/05/u-s-sec-officially-approves-ethereum-etfs-public-trading-yet-to-start/" rel="noopener noreferrer nofollow"> approval of Ethereum ETFs</a> has sparked discussions about the regulator’s openness to other altcoin spot ETFs. Political factors, including the influence of the crypto lobby and the upcoming 2024 election, are believed to have influenced the SEC’s evolving position.
Meanwhile, Gensler has<a href="https://defi-planet.com/2024/05/sec-chief-gensler-slams-fit21-act-cites-threats-to-investor-protection/" rel="noopener noreferrer nofollow"> criticized</a> the Financial Innovation and Technology for the 21st Century Act (FIT21 Act), a new pro-crypto bill recently approved by the House of Representatives. He expressed significant concerns over its potential impact on investor protection and market stability.
In a<a href="https://www.sec.gov/news/statement/gensler-21st-century-act-05222024" rel="noopener noreferrer nofollow"> statement</a> on May 22, 2024, Gensler argued that the FIT21 Act would create substantial regulatory gaps, undermining decades of established oversight. He warned that the act could jeopardize investor safety and destabilize capital markets by shifting regulatory responsibilities away from the SEC.
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The post <a href="https://defi-planet.com/2024/06/sec-chair-gensler-warns-crypto-exchanges-about-enforcement/" rel="noopener noreferrer nofollow">SEC Chair Gensler Warns Crypto Exchanges About Enforcement</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

SEC Chair Gensler Warns Crypto Exchanges About Enforcement

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