In an interview with CNBC on June 5, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler responded to Jim Cramer’s question about potential exchange products beyond Bitcoin and Ethereum.
Gensler said that despite the approval of the relevant 19-4b document last month, the launch of the spot Ethereum ETF will "take some time." He pointed out that the ETF application is going through the normal process, which may take some time, but he remained vague about the specific launch timeline.
At the same time, the SEC chairman also criticized the bad behavior of crypto exchanges and said that the market is still rife with fraud and manipulation. He added that the SEC remains committed to ensuring the integrity of the market.
Lack of basic disclosure information
In the interview, Gensler expressed concerns about the lack of proper disclosure and regulation in the broader crypto market, arguing that most cryptocurrencies do not meet the “basic disclosure requirements” expected of a regulated asset class.
Gensler highlighted that investors were not getting the information they needed to make informed investment decisions, one of the fundamental tenets of stock markets.
Gensler also spoke about the potential risks that crypto exchanges could pose, contrasting them with traditional stock exchanges such as the New York Stock Exchange (NYSE). He criticized crypto exchanges for allegedly engaging in activities that are not permitted under U.S. law, such as betting against customers, which creates a major conflict of interest.
He noted: “Crypto exchanges are engaging in practices that would never be permitted on the New York Stock Exchange. Our laws do not allow exchanges to bet against their customers, yet this is happening in the crypto space.”
Gensler stressed the importance of ensuring that investors are protected from fraud and market manipulation. He cited several recent high-profile incidents, including the collapse of FTX and Celsius Network, as examples of the prevalence of illegal activities in the crypto market. He further noted that these illegal activities remain a core issue in the cryptocurrency market and are a focus of regulators.
Gensler also mentioned the SEC's ongoing enforcement activities and reaffirmed the SEC's responsibility as a civil law enforcement agency to maintain market integrity.
The impact of artificial intelligence on financial markets
Gensler also discussed artificial intelligence (AI) and the impact this technology could have on financial markets in his review, arguing that AI is the most revolutionary force of our time, while also warning of the risks that its application could bring.
“AI can enhance capital markets, but it can also lead to conflicts, fraud, and systemic problems if not managed properly,” Gensler said.
The interviews also touched on broader market topics, including the balance between public and private markets and the need for fair competition.
Gensler concluded his discussion by highlighting the critical role that public markets play in ensuring transparency and access to investment opportunities, while also noting the current development and growth in the private credit market. #SEC #Gensler #以太坊ETF #监管
Conclusion:
In an interview with CNBC, Chairman Gensler's comments highlighted the SEC's serious attitude and future direction towards regulating the cryptocurrency market. His emphasis on the misconduct of crypto exchanges, the importance of investor protection, and the double-edged sword nature of artificial intelligence technology in the financial field all point to a common goal: ensuring fairness and transparency in the market.
I believe that with the development of emerging technologies such as cryptocurrency and AI, the role of the SEC has become particularly critical. It must not only protect the interests of investors, but also balance innovation and risk.
At the same time, Gensler’s remarks serve as a reminder to all market participants that compliance, transparency, and fair competition are integral to healthy markets, and that the SEC will continue to play its role in upholding these principles.
