šSEC Chairman Gensler weighs in on approving more token ETFs
Gensler cites lack of investor protection in crypto markets amid ETF discussion.
SECās Chairman Gary Gensler was questioned today on CNBCās Squawk on the Street about the possible approval of exchange-traded funds (ETF) indexed to tokens such as Osmosis (OSMO) and Bonk (BONK) in the US. Jim Cramer, one of the showās hosts, highlighted how multiple tokens registered millions in trading volume āthis very morning,ā and questioned if the US shouldnāt have āsome sort of productsā to capture this volume.
š¬ āLet me say something more broadly about crypto markets: right now, without pre-judging anyone, these tokens, whether the ones Jim listed or other tokens, have not given you the disclosures that not only do you need to make your investment decisions, but also are required by the law,ā said Gensler.
He adds that the SECās role is to guarantee investors have disclosure and that exchanges are properly regulated to prevent fraud, market manipulation, and avoid trading against their customers.
š¬ āAnd these crypto exchanges, Jim, are doing things we would never allow this New York Stock Exchange to do. Our laws donāt allow you to trade against your customers.ā
Furthermore, Gensler mentions bankruptcy cases in crypto. Although he doesnāt name specific companies or their former executives, the SEC Chairman hints that his remarks apply to Do Kwon, former Terraform Labsā CEO, who is facing an extradition case after being arrested in Montenegro.
š¬ āSome of the leading lights in this field are either in jail, or about to go to jail, or waiting for extradition [ā¦] Itās a suboptimal situation for investors. You are investing in a field right now that you are not getting the proper disclosure,ā concludes Gensler on the next crypto ETFs topic.
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