SEC Chairman Reaffirms Many Tokens Are Securities, Raises Concerns about Insufficient Disclosure: Where Are Their Financial Reports During Earnings Season?

SEC Chairman Reaffirms Many Tokens Are Securities, Raises Concerns about Insufficient Disclosure: Where Are Their Financial Reports During Earnings Season?

SEC Chairman Reaffirms Many Tokens Are Securities, Raises Concerns about Insufficient Disclosure: Where Are Their Financial Reports During Earnings Season?

Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), stated in an interview on CNBC’s Squawk Box yesterday that while cryptocurrencies are only a small part of the SEC’s regulatory scope, they represent the market with the highest proportion of scams, fraud, and other issues. Most aspects of this field do not meet the requirements for protection under securities laws.

When asked about the recent action taken by the SEC against Robinhood, which issued a Wells Notice, Gary Gensler explained that in the field of crypto assets, many tokens are considered securities under local law, based on the interpretation of the US Supreme Court. The SEC’s responsibility is to comply with the law. Investors have not received the necessary disclosures regarding these cryptocurrency assets.

The host, Andrew Ross Sorkin, further pressed Gary Gensler on the question he has been avoiding all along: “Is Ether a commodity or a security? Is there a chance for an ETF to be issued?”

However, Gary Gensler still did not provide a direct response to this question. Despite the host’s attempts to prompt him for an answer, including mentioning criticisms from members of Congress regarding Gary Gensler’s refusal to answer questions about the SEC’s classification of Ether and the possibility of an Ether ETF, the response received was still bureaucratic and did not directly address the question.