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SEC chairman Gary Gensler asserts that “fraud is a significant issue within crypto”

SEC chairman Gary Gensler asserts that "fraud is a significant issue within crypto” 2

Gary Gensler described the crypto market as a very small fraction against the $110 trillion money market. 

Gary Gensler is the chairman of the United States Securities and Exchange Commission (SEC) agency. Under Gensler’s leadership, the SEC body has been trying to forcibly regulate the crypto sector under traditional securities laws. The majority of the crypto advocates & entrepreneurs are against Gensler’s leadership. In the past many times, crypto companies claimed that the SEC body took action against their crypto services but they never provided any guidance around the crypto rules & laws. 

On 7 May 2024, In an interview with CNBC’s Squawk Box, SEC chairman Gary Gensler compared the $2.4 trillion crypto market with the “$110 trillion capital market”.

Gensler said that the crypto market doesn’t comply with the American securities laws so it has “an outsized piece of the scams and frauds and problems in our markets.” 

The show host indirectly asked why the SEC body seems focused on the crypto sector. Gensler quickly said “it’s function of where your attention is.”

Indirectly Gensler said that people think that the SEC body focussed on crypto sector enforcement action but that is not true because crypto people are not interested in the non-crypto market.

SEC Chair @GaryGensler: "Crypto is a small piece of our overall markets. But it's an outsize piece of the scams and frauds and problems in our markets."

— Squawk Box (@SquawkCNBC) May 7, 2024

Furthermore, Gensler said that he appeared on the CNBC Squawk Box a dozen times and noted that the host asked about crypto every time. 

Later CNBC host asked Gensler about the SEC’s recent Wells notice against stock & crypto firm Robinhood. Gensler denied to talk about any company.

Gensler also said that the majority of the crypto investors are not getting “needed disclosures” about crypto and the majority of the crypto assets are securities under the Securities Act. 

Coinbase chief legal officer Paul Grewal responded against Gensler’s latest interview and said “Please stop misleading the market — tokens are NOT securities.”

“Many of those tokens are securities under the law of the land, as interpreted by the US Supreme Court. So we follow that law.”

Please stop misleading the market—tokens are NOT securities. Their pleadings notwithstanding , your own attorneys have admitted this in court.

— paulgrewal.eth (@iampaulgrewal) May 7, 2024

Read also: Grayscale Withdraws Ethereum ETF Application Amid SEC Delays: Regulatory Hurdles?

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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