SEC Chair Tired of Answering Questions Regarding Crypto, ETH ETF

• SEC Chair Gary Gensler called for increased transparency in the crypto space.
• Gensler seeks to eliminate the non-compliance in the space displayed by firms.
• The SEC Chair deflected questions regarding ETH or ETH ETF applications.

Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), appeared on CNBC’s “Squawk Box” on May 7, 2024, addressing key issues surrounding financial oversight and regulation. 

The SEC Chair talked to Andrew Ross Sorkin and stated that the regulator oversees markets worth $110 trillion, but he is mostly asked questions about the digital asset space, which is a fraction of this amount.

“Crypto is a small piece of our overall markets. And — but it’s an outsized piece of the scams and frauds and problems in our markets because without prejudging any one token, much of this field is noncompliant with the protections of our securities laws,” noted Gensler.

While talking about the Wells Notices sent to Coinbase and Robinhood, Gensler underscored the SEC’s commitment to ensuring transparency and fairness in the crypto market. 

He stressed the importance of providing full, fair, and truthful information to investors, highlighting that if crypto products are securities, the firms offering exposure to them must adhere to the same rigorous standards as other securities.

Additionally, Gensler was also seen deflecting questions regarding the approval of a spot Ethereum exchange-traded fund (ETF) in the United States. He also did not answer if ETH is a commodity or a security.

When asked about his future, Gensler expressed his commitment to his current role as SEC Chair. He noted his privilege in serving and emphasized his intention to continue in his role well into 2026. Gensler highlighted his focus on contributing to the robustness of American capital markets and protecting investor interests.