SEC Chair Gensler Accuses Crypto Exchanges of Breaking the Law

Joshua Ramos
Binance Considered Tapping Gensler’s Expertise as an Adviser: Report
Source: VOI

The US Securities and Exchange Commission (SEC) Chairman Gary Gensler has recently accused cryptocurrency exchanges of breaking the law. Speaking to CNBC Wednesday morning, Gensler discussed the absence of necessary disclosures and additional operations violations that these platforms commit.

Specifically, Gensler said that “crypto exchanges are doing things the law would never allow [NYSE] or traditional exchanges to do.” Gensler discussed the crypto industry with Jim Cramer while delving into his perspective on the market’s shortcomings by SEC standards.

Also Read: Gary Gensler: SEC Has Done Very Well in Court on Crypto Cases

SEC’s Gensler Targest Crypto Exchanges in Recent Interview

There is no understatement of the rather combative relationship that has developed between the SEC and the crypto market. The former’s commitment to regulation by enforcement has only stifled the industry’s presence in the United States. Although political action is seeking to change that, there remains a disconnect between both parties.

Now, SEC chair Gary Gensler has accused crypto exchanges of breaking the law. In an interview with CNBC, Gensler said these changes “do things that the law would never allow” traditional stock exchanges to do. Specifically, he referenced the issues that the market has had with proper disclosures.

Source: CNBC

Also Read: SEC: Gary Gensler Requests $2.6B to Take On Crypto Industry

Furthermore, Gensler noted that the SEC was created to require disclosure of changes while saying that crypto markets aren’t giving it. Additionally, he remarked on the necessity for exchanges to “be properly regulated” so they don’t trade against investors.

Moreover, Gensler noted that traditional crypto tokens are not “giving you the disclosures that you need,” and that is required by law.” That perspective is not just limited to the specified offerings, as the SEC Chairman has taken aim at additional exchanges for their role in perpetuating the same standard.