SEC Chairman Gary Gensler Says Investors Lack Necessary Crypto Disclosures Following Multiple Wells Notices

Securities and Exchange Commission Chairman Gary Gensler says investors are not receiving vital crypto disclosures after the agency served notices to multiple crypto entities it plans to file enforcement actions against.

Gensler was asked on the CNBC Squawk Box on Tuesday morning about the agency's recent decision to file a Wells Notice against Robinhood Crypto, the crypto unit of brokerage firm Robinhood Markets. The exchange said on Monday that SEC staff had decided to recommend enforcement action against the crypto unit, alleging securities violations.

Gensler said he could not speak to any particular company.

"Stepping away from it, the cryptoasset field, without prejudging any of them, many of those tokens are securities under the law of the land, as interpreted by the United States Supreme Court," Gensler said on CNBC. "So we comply with that law and you, the investors, do not receive the required or necessary information about those assets."

So… is ether a value or a commodity?

Gensler did not directly say how ether would be classified when asked by CNBC whether it could be a security or commodity.

"The only thing I would say is, to me, the fundamental question is how do we ensure that the American investor is protected?" Gensler said. "Right now, they are not getting the required or necessary disclosures, and the brokers at the center of this fairly centralized market are generally conflicted and doing things that we would never allow the NYSE to do."

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