SEC’s Gary Gensler avoids talking about Ethereum’s status as a security

In a recent interview on CNBC, United States Securities and Exchange Commission (SEC) Chairman Gary Gensler chose not to directly categorize Ethereum as a commodity or security. Instead, Gensler highlighted the importance of protecting American investors and addressed the conduct of intermediaries in the crypto space.

“What I can say is that my central concern is: how can we protect the American investor? Currently, they are not receiving the information that is properly required,” said Gensler when answering a question from Andrew Ross Sorkin on the “Squawk Box” program.

Gensler continued to criticize the current structure of the cryptocurrency market, comparing it to practices prohibited in more traditional markets: “And the intermediaries, who are at the heart of this centralized market, often operate in conflict, doing things that we would never allow the Exchange to do. New York Stock Exchange did, how to trade against investors.

Ethereum’s legal status is one of the main areas of interest, given that its classification could define the rules of its regulatory future and its possible inclusion in exchange-traded funds (ETFs). However, Gensler did not confirm this classification.

SEC Chair @GaryGensler on the question: Will investors one day see an Ethereum ETF? pic.twitter.com/TOgNAotAOh

— Squawk Box (@SquawkCNBC) May 7, 2024

During the interview, Gensler also mentioned that several Ethereum-based ETF registrations are being reviewed by the SEC. He took the opportunity to redirect the discussion from the specific findings to the SEC’s broader goals, emphasizing that the priority is investor protection.

While not revealing the SEC’s stance on Ethereum, the agency’s actions suggest a move to classify Ether as a security, highlighting ongoing investigations into the Ethereum Foundation and the existence of court documents that point in that direction.

The SEC’s attention to cryptocurrencies, according to Gensler, is more driven by the media than by the commission’s own agenda, despite crypto representing a small part of the financial market. “The focus on cryptocurrencies is more a response to public interest and media coverage than a reflection of our regulatory agenda,” Gensler explained.

The SEC chairman also highlighted that many tokens still do not comply with necessary regulations, resulting in a lack of transparency and adequate protection for investors.

In concluding, Gensler avoided going into detail about the oversight of other market players, such as Robinhood, which has faced threats of legal action from the SEC, reinforcing that the commission’s objective is to ensure investor protection and compliance with laws. securities trading.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.