SEC Chairman Gary Gensler continued to criticize the cryptocurrency sector in an interview with Bloomberg on June 25. He believes that this market lacks transparency and has many serious violations of the law, especially the issue of centralization.
Gensler emphasized that some cryptocurrency platforms today have too much control and incorporate practices that violate laws that the traditional financial industry would never tolerate.
He listed a number of specific violations such as trading against customer interests, front running and receiving investments before listing. He also mentioned ongoing lawsuits, saying many "leading figures" in the industry are facing jail time.
The SEC Chairman affirmed that the violations are not only related to securities laws, but also include other laws such as the Bank Secrecy Law, the Commodity Exchange Law, and anti-money laundering laws.
According to Gensler, many cryptocurrency platforms are offering tokens that could be considered securities under current law and Supreme Court opinions. At the same time, he believes that the American public lacks adequate information about these products, while intermediaries such as exchanges and stock brokers are operating without transparency.
Gensler said the above problems, combined with serious violations of the law, have led the SEC to bring lawsuits against many companies in the industry. He affirmed that the SEC will continue to take action to protect investors from potential risks in the cryptocurrency market.
While refusing to answer political questions, Gensler confirmed the approval process for spot Ethereum ETFs is going smoothly. However, he did not make any predictions about the timing of approval.
Gensler's statement shows that the SEC still maintains a tough stance on the cryptocurrency industry. The industry will face many challenges in complying with SEC regulations, and investors need to be more cautious when entering the market.