SEC Chairman Gary Gensler Avoids Direct Ethereum Classification

Securities and Exchange Commission (SEC) Chairman Gary Gensler did not directly address whether ethereum was a commodity or a security in an interview with CNBC on Tuesday. Instead, he shifted focus to broader regulatory concerns, specifically the protection of U.S. investors and the conduct of intermediaries in the cryptocurrency market.

“All I would say is, for me, the fundamental question It's, it's like Do we ensure that the American investor is protected? And right now, they are not receiving the required or necessary information,” Gensler said. answered to an inquiry about Andrew Ross Sorkin's ethereum ranking on CNBC's “Squawk Box.”

“And the middlemen at the center of this fairly centralized market generally they are conflicted and doing things we would never allow the New York Stock Exchange to do. The New York Stock Exchange cannot trade against investors Gensler stated.

<span class="issue-underline underline decoration-2 underline-offset-4 transition decoration-border-brand-default hover:bg-bg-brand-light-default" data-issueid="51337aeb-02ee-4f61-8f45-da145131aacb" aria-label="open issue for the following text The status of ethereum” data-testid=”issue-underline:undefined”>The legal status of ethereum is one of the key areas of discussion, as how Ether is classified could indicate how it could be regulated and whether it could be included in exchange-traded funds such as ETFs. Unfortunately, Gensler did not give a definitive answer.

In his brief comment on the potential of spot ethereum exchange-traded funds (ETFs), the SEC chair said filings are currently under consideration. He redirected the conversation from specific results on the ethereum ETF to broader objectives of the SEC.

Even though the SEC's stance on Ether has not been revealed, the agency's alleged actions speak further what words.

A series of reports show that the agency is trying classify Ether as a security. He <span class="issue-underline underline decoration-2 underline-offset-4 transition decoration-border-brand-default hover:bg-bg-brand-light-default" data-issueid="9a29e501-d941-4fc7-8d44-38f190970588" aria-label="open issue for the following text investigation into the ethereum Foundation” data-testid=”issue-underline:undefined”>research on the ethereum Foundation Reportedly, that's part of it.

Recent court filings besides pointed out that the SEC Deemed Unregistered ethereum Security for at least a year. Numerous subpoenas and document requests have been sent to <span class="issue-underline underline decoration-2 underline-offset-4 transition decoration-border-brand-default hover:bg-bg-brand-light-default" data-issueid="8306c81d-9943-4cf9-8922-064e00b3de1e" aria-label="open issue for the following text entities associated with ethereum.” data-testid=”issue-underline:undefined”>entities associated with ethereum.

Focus on cryptocurrencies is media-driven

According to Gensler, Cryptocurrencies represent a small portion of the financial market. However, it attracts widespread attention from journalists because it attracts a disproportionate share of scams, fraud, and regulatory problems.

When asked why the SEC devoted so much time to cryptocurrencies despite its modest market capitalization of $110, Gensler said the focus on cryptocurrencies is driven more by the media and public interest than by the SEC's agenda. .

“I've been on your show, how many times? A dozen times? And every show, questions about cryptocurrencies. And my fortune telling This will be a mostly cryptocurrency interview. While the capital markets are 110 trillion dollars. It is also about where the financial means are. is focused,” Executioner he claimed.

Gensler added that many tokens do not meet the necessary protections required by these laws. This failure results in a lack of adequate disclosure and protection for investors.

The SEC chief also avoided discussing oversight of several market players, including Robinhood, which recently received a Wells Notice from the SEC. He simply said that investors need protection and that the SEC's overall role as a regulatory body is to ensure compliance with the law in securities trading.

The SEC has faced backlash from crypto community members and lawmakers after threatening a lawsuit against Robinhood's crypto arm. Critics of cryptocurrencies argue that the SEC should protect investors rather than stifle cryptocurrency innovation and that it has been overly focused on the industry.