Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), expressed exasperation with the disproportionate focus on crypto-related questions compared to traditional finance during media interviews.
Gensler highlighted the vast contrast between the $110 trillion capital market overseen by the SEC and the $2.4 trillion crypto market. Despite crypto’s relatively small portion of the overall market, it attracts a significant share of journalist inquiries and media attention due to the prevalence of scams and non-compliance with securities laws.
Gensler noted that media interviews often center around crypto, reflecting the financial media’s attention rather than the SEC’s priorities. He pointed out that crypto-related questions dominate discussions despite the broader scope of the SEC’s responsibilities.
During an interview, Gensler sidestepped questions regarding specific cases, such as the SEC’s Wells notice to Robinhood and inquiries about Ether’s classification as a security. He emphasized the importance of investors receiving proper disclosures about crypto and hinted that many tokens could be considered securities under U.S. law.
Paul Grewal, Coinbase’s legal chief, challenged Gensler’s assertion that tokens are securities, accusing him of misleading the market. Gensler avoided directly addressing accusations of misleading Congress regarding the SEC’s stance on Ether’s classification.
In response to allegations of misleading Congress, Gensler defended the SEC’s practice of not disclosing ongoing investigations or regulatory intentions. He emphasized the importance of accurately conveying the SEC’s actions to Congress.
The SEC’s increased scrutiny of the crypto industry is evident from the six crypto-related lawsuits filed in 2024 and the record-high 46 enforcement actions against crypto firms in 2023. Numerous court cases initiated by the SEC focus on allegations of selling unregistered securities and operating unlawfully in the crypto space.
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