Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), reiterated his criticism of the cryptocurrency industry in an interview with Bloomberg on June 25. Gensler pointed out that although the industry claims to be decentralized, it is actually highly centralized and seriously non-compliant.
Gensler not only downplayed the decentralized nature of the crypto industry, but also criticized some platforms for centralized and hybrid behavior, saying that these behaviors are unacceptable in other fields. He also listed some violations in the industry, including customer trading, front-loading transactions, and accepting investments before listing.
Gensler stressed that many leading figures in the cryptocurrency space have faced or are about to face jail time, which shows the seriousness of protecting investors. He added: "I say this, and you may find it funny... but this is a serious matter... This is about truly protecting investors."
Furthermore, Gensler said that the laws involved in the non-compliance are not limited to securities laws, but also include the Bank Secrecy Act, the Commodity Exchange Act and the Anti-Money Laundering Act. He reiterated his previous position that most cryptocurrency tokens should actually be classified as securities under national laws.
Most tokens should be defined as securities
SEC Chairman Gary Gensler made it clear during the discussion that many of the tokens used by cryptocurrency platforms are securities in nature, according to U.S. law and the Supreme Court’s interpretation, which is consistent with his previous view that most cryptocurrencies should be considered securities.
Gensler further emphasized that these tokens were offered to investors as investment contracts, but the American public did not receive the disclosures required by law. He also mentioned that many cryptocurrency exchanges and broker-dealers act as intermediaries and manage a large amount of assets, and questioned: "How many of these products are not participated by entrepreneurs? This does not make sense logically."
Gensler also mentioned that the SEC has filed lawsuits against several companies due to non-compliance in the cryptocurrency field, including failure to comply with securities laws and other legal provisions, in order to protect the public interest from being harmed.
Avoiding political issues
SEC Chairman Gary Gensler has remained evasive when asked about political issues. For example, when asked by Mark Cuban about the hypothetical impact that his cryptocurrency policy might have on Joe Biden's chances of winning the election, Gensler chose not to respond, stating clearly and succinctly: "I don't talk about elections."
Gensler also declined to comment on the broader political movement around cryptocurrency and whether it surprised him personally, noting: “Others can talk about the election.”
Despite remaining silent on political issues, Gensler gave a positive signal on the approval process of the spot Ethereum ETF. He did not reveal whether the ETF would be finally approved in the next few weeks or before the election, but confirmed that the whole process is progressing smoothly. #SEC #合规 #监管 #中心化
Conclusion:
SEC Chairman Gary Gensler's comments highlight concerns about compliance in the cryptocurrency industry and his insistence that many tokens should be considered securities. His comments and actions highlight the need for regulation to protect investors and ensure market integrity. At the same time, Gensler remains neutral on political issues and focuses on regulatory duties.
As the regulatory framework for cryptocurrencies becomes clearer, Gensler's guidance will have a profound impact on the future development of the industry. Market participants need to realize that true innovation must be carried out under the premise of respecting existing laws. At the same time, Gensler's positive attitude towards the approval process of the spot Ethereum ETF indicates that regulators are working hard to find a balance between innovation and compliance.
