Securities and Exchange Commission (SEC) Chair Gary Gensler has slammed the cryptocurrency sector for not providing adequate disclosure to investors compared to the traditional financial space. In an interview with CNBC, Gensler said that most cryptocurrencies are considered securities and must comply with the relevant laws.

Gensler's comments came a few days after Robinhood's crypto arm received a Wells notice for a potential enforcement action by the SEC. The regulator has issued similar notices to Coinbase and decentralized finance (DeFi) crypto exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Uniswap. The cryptocurrency market has increasingly drawn regulatory scrutiny in recent years. During the interview, Gensler addressed this issue, offering insights into the intersection of cryptocurrency and traditional stock markets.

Broad Oversight

Regarding recent developments, Gensler maintains that the SEC has a mandate to uphold legal standards in the financial industry. He emphasized that the ongoing litigation and enforcement efforts seek to safeguard investor interest.

"But stepping back from it, the field of crypto assets, without prejudging any one of them, many of those tokens are securities under the law of the land, as interpreted by the U.S. Supreme Court. So we follow that law. And you, the investors, are not getting the required or needed disclosures about those assets," Gensler told CNBC.

Gensler outlined the SEC's expansive jurisdiction, overseeing a staggering $110 trillion in capital markets. While the stock market constitutes a significant portion, Gensler stressed that cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, though a smaller segment, are disproportionately plagued by scams and noncompliance with securities laws.

Amidst mounting concerns over crypto-related frauds, Gensler highlighted the lack of regulatory compliance within the crypto space. He emphasized the crucial role of disclosures in traditional securities markets, underscoring the disparity in transparency between crypto assets and traditional securities.

Gensler Reaffirms Crypto Regulation

Responding to queries regarding the attention dedicated to cryptocurrencies, Gensler underscored the media's role in shaping the discourse. Despite the spotlight on crypto, Gensler expressed his commitment to addressing broader market issues, including ensuring investor protection and market integrity. He maintains his long-standing stance that most cryptocurrencies are securities.

Recently, Robinhood CEO Vlad Tenev faulted the enforcement action by the SEC, saying: "Over the last three years, we’ve reached a state of regulatory onslaught that is harmful to American companies and consumers. The SEC’s continued attack on crypto, coupled with recent rule proposals like the one related to predictive data analytics, mark yet another improper attempt by the administrative state to stifle innovation."