SEC Chairman Gary Gensler gave an interview to CNBC, lightly brushing over the reasons for Ethereum’s approval and vehemently criticizing the lack of information disclosure in the cryptocurrency industry.
Gary Gensler: Insufficient Disclosure by Cryptocurrency Exchanges
Gary Gensler remains highly critical of cryptocurrency exchanges, pointing out that even if exchanges disclose the risks of their products to retail investors, the SEC may still continue to take enforcement actions against them.
He stated:
Cryptocurrency exchanges that disclose information may still face regulatory action if they are involved in “market manipulation.” If these exchanges publish “misleading” information that leads traders to invest in products they wouldn’t normally invest in, they will also not be exempt from prosecution. Simply disclosing information does not necessarily protect these wrongdoers.
Gensler also emphasized that the majority of cryptocurrency companies still do not disclose information, and that the operation of exchanges has never been allowed on traditional financial market trading platforms.
Time Needed for Ethereum ETF Listing
In fact, Gary Gensler briefly touched on the ETF issue or instead criticized the prevalence of cryptocurrency scams.
Regarding the approval of an Ethereum ETF, he said:
Ethereum futures have been trading on the CME for over three years. SEC staff have carefully studied this and approved 19b-4, but the S-1 form will still take some time and is currently being worked on.
Bloomberg ETF analysts estimate that an Ethereum spot ETF may launch in early July.
Harsh Criticism of Competing Coin ETFs
Jim Cramer also mentioned that many competing coins have daily trading volumes in the millions of dollars, and questioned whether the U.S. should have some kind of traditional financial product to capture this trading volume.
Gary Gensler criticized this by saying:
Without predicting any possibilities, these tokens, whether those mentioned by Jim Cramer or others, do not provide the information needed for investment decisions. Furthermore, these exchanges are doing things that we will never allow the New York Stock Exchange to do.
Additionally, Gensler hinted that the consecutive imprisonments of cryptocurrency executives including Do Kwon and SBF repeatedly demonstrate the severe lack of information disclosure in the cryptocurrency industry.