U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler covered a variety of subjects, including cryptocurrencies.(Photo : by Drew Angerer/Getty Images)
SEC Chairman Gary Gensler outlined the significant value of the capital market, with the stock market comprising half, and bonds and other markets making up the rest, emphasizing the regulatory landscape's breadth.
Gensler addressed the regulatory perspective on token securities, highlighting the classification of many tokens as securities and stressing the importance of proper disclosures to investors, drawing parallels with traditional asset transparency.
Gensler emphasized the necessity of full, fair, and truthful information for crypto investors, particularly regarding disclosures for crypto securities, and advocated for a clear separation of duties among entities involved in cryptocurrency trading platforms to ensure regulatory compliance.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler covered a variety of subjects, including cryptocurrencies. "The capital market we regulate is worth $110 trillion. Of that, the stock market makes up around half. The bond and other markets make up half, as you may know," Gensler stated.
Gensler addressed the Wells notice sent to Robinhood Markets concerning its cryptocurrency operations, highlighting the regulatory perspective on token securities. Gensler emphasized the classification of many tokens as securities according to U.S. Supreme Court interpretations, underscoring the need for appropriate disclosures to investors. He compared the lack of disclosures for crypto tokens to the transparency expected during earnings seasons for traditional assets.
The SEC chairman emphasized the lack of proper disclosures for crypto investors. He highlighted the importance of investors receiving full, fair, complete, and truthful information, which he believes they are not currently getting in the crypto space. Gensler reiterated the necessity for such disclosures, especially for crypto securities, indicating that they are required and crucial for investor protection.
According to Gensler, there should be a clear separation of duties between your clearinghouse, exchange, and brokerage functions if you run a cryptocurrency trading platform, or exchange as they are known in the industry, and you have listed certain tokens, or essentially anything that isn't bitcoin. Trading cryptocurrency in the United States ought should be comparable to trading other securities there.
If a cryptocurrency passes the Howey test, it becomes regulated by the SEC. This criteria has been used to distinguish the sale of securities from other acquisitions since it was adopted from a 1946 Supreme Court judgment about orange plantations. The court decided that if someone invests "money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party," then a contract is subject to SEC jurisdiction.
Regulators seek to improve investor safeguards, maintain market stability, and boost transparency in the quickly changing digital space.
The content provided on MoneyTimes.com is for informational purposes only and is not intended as financial advice. Please consult with a professional financial advisor before making any investment decisions.
