In an exclusive interview with CNBC’s Andrew Ross Sorkin, Securities and Exchange Commission (SEC) Chair Gary Gensler shared insights into the regulatory landscape.
He highlighted the agency’s oversight of the capital markets and addressed concerns surrounding cryptocurrencies and market integrity. Gensler also hinted at his willingness to serve as the SEC Chair beyond 2026.
“I’m just focused on this job, but this is one of the greatest privileges… anybody who’s listening, I’m honored to serve my third president as the 33rd Chair of the SEC, overseeing $110 trillion capital markets,” he expressed.
“This is a terrific job where we can help Americans, investors, and issuers, for decades to come… so my term is well into 2026, and if I have the honor to continue to serve, I look forward to it.”
Throughout the discussion, Gensler reiterated the SEC’s duty to safeguard the $110 trillion capital market to protect investors and ensure compliance with securities laws.
He noted that despite the crypto market’s relatively small size compared to the overall market, there are significant scams and fraud in the industry.
Gensler stressed the necessity for prompt regulatory actions and enhanced oversight to combat illicit activities within the cryptocurrency sector.
ETH as securities
While refraining from directly addressing whether Ethereum should be classified as a security or commodity, Gensler stressed the importance of providing adequate disclosures to U.S. investors.
The Securities and Exchange Commission (SEC) has been considering the classification of Ethereum (ETH) as a security, which has raised huge concerns and implications within the crypto industry.
Despite earlier opinions from high-ranking staff members that Ether is a commodity and beyond the SEC’s jurisdiction, it is yet unclear if the SEC is willing to ignore Ether or not.
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Contrary to opinions shared by some, especially within the regulatory body, Coinbase has contended that crypto-assets do not fit the criteria for securities, a stance widely shared within the crypto sector.
The SEC has been embroiled in a legal dispute with Coinbase over the classification of cryptocurrencies, aiming to distinguish between those considered securities and those that are not.
The SEC and Robinhood on securities matter
The Chair also expressed concerns over the lack of regulatory compliance within the crypto space with emphasis on the ongoing enforcement actions against companies like Robinhood and Coinbase.
It can be recalled that on May 6, 2024, the SEC issued a Wells Notice to Robinhood. The SEC believes Robinhood may have violated securities laws with its crypto offerings.
In response to this, Robinhood has asserted that the cryptocurrencies listed on its platform are not securities,
“We firmly believe that the assets listed on our platform are not securities and we look forward to engaging with the SEC to make clear just how weak any case against Robinhood Crypto would be,” Dan Gallagher, chief legal, compliance, and corporate affairs officer at Robinhood, said.
Addressing criticisms leveled against the SEC, particularly regarding its handling of crypto-related matters, Gensler affirmed the agency’s commitment to upholding legal standards and protecting investors’ interests.
He also called on the necessity of accurate disclosures and adherence to regulatory requirements, particularly in regard to recent cases involving auditing firm misconduct and valuation discrepancies in the industry.
