Gary Gensler, chair of the Securities and Exchange Commission, took another jab at the cryptocurrency market, saying it may need some “disinfectant.”
Speaking at the Columbia Law School conference on Friday, Gensler discussed the advantages and necessity of disclosures in the financial markets generally, including those about cyber and climate risks.
Gensler emphasized that disclosures enhance market efficiency and ultimately safeguard investors. In his prepared remarks, Gensler stated, “There are participants in crypto securities markets that seek to avoid these registration requirements.”
He added, “No registration means no mandatory disclosure. Many would agree that the crypto markets could use a little disinfectant.”
Gensler has often issued warnings that cryptocurrency firms are bound by the same regulations as traditional finance and that cryptocurrency exchanges must register with the agency.
Over the last year, the SEC has accused Coinbase, Kraken, and other companies of acting as an unregistered exchange, broker, dealer, and clearinghouse. Crypto companies, meanwhile, have maintained that registering with the government is not feasible.
In his prepared remarks on Friday, Gensler also addressed the necessity of disclosures regarding executive salaries, environmental issues, and cyber dangers. This follows the SEC’s vote earlier this month to approve rules mandating that businesses reveal risks associated with climate change.
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