Gary Gensler, the SEC Chair, has asked crypto investors to take more precautions and be more available when making mandatory disclosures. The US Securities and Exchange Commission statement comes in the wake of several cryptocurrencies entering the market. Gary has said that most qualify as securities but operate on American soil without necessary compliance. He has further said that they go on to stage scams and fraud in the trading world.
Engagement with securities in the trading market is acceptable until there is no breach of relevant laws. Some cryptos, however, have been found to breach protections and security laws. This makes it a matter of concern for the agency, which is primarily tasked to protect investors from mishappenings.
Gensler has stated that the global crypto sphere has a market cap of more than $1 trillion, yet the media chooses to focus on minor issues.
He has also talked about Robinhood. The crypto platform was served a Wells Notice on May 04, 2024, over a piece of information disclosed by the platform during an investigation by the Commission. Gary has said that the Wells Notice does nothing but is a testament to their responsibilities of ensuring proper regulations surrounding entities that offer security trading services. Wells Notice effectively gives Robinhood, or any other company, a certain amount of time to respond to the investigation before the SEC declares the findings.
Dan Gallagher, Robinhood’s Chief Legal, Compliance & Corporate Affairs Officer, has expressed disappointment in this regard. Dan said that they were disappointed after learning about the Wells Notice from the SEC, adding that they had invested years in good faith in attempts to achieve regulatory clarity with the SEC.
Gallagher has expressed confidence by saying that assets on their platform are not securities, further stating that they are looking forward to engaging with the SEC to clarify the case against Robinhood.
Meanwhile, the market waits to learn about what Gary thinks about Ethereum. Finally, the classification of Ether as, or not as, a security will decide the approval of Ether ETF. Until then, the future of Spot ETH ETF is uncertain.
ETH is hanging tight on the trading board at $3,033.88. The token has jumped by 1.33% in the last 24 hours. It was previously seen testing the resistance at $3,100. That mark has been broken for a potential downswing, which is expected in the next couple of days. Clarity around Ether ETF is more likely to spark optimism in the token value – possibly triggering a bull run.
Gary Gensler, the SEC Chair, continues to seek precautionary measures by investors while engaging with the crypto market in the US.