Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), has blasted crypto sector participants for failing to register with the authority.In his final remarks at Columbia Law School, Gensler underlined the necessity of obligatory disclosure for market players, citing Supreme Court Justice Louis Brandeis’ assertion that “Sunlight is said to be the best of disinfectants.”Gensler voiced concern about some players in the cryptocurrency securities markets attempting to avoid registration requirements, resulting in a lack of obligatory disclosure.He emphasized the importance of transparency in the cryptocurrency markets and suggested that some disinfection actions could assist the business.
Over the last year, the SEC has brought multiple cases against cryptocurrency companies, with SEC Chair Gary Gensler continually claiming that most cryptocurrencies should be categorized as securities.For example, the government has filed a civil complaint against FTX co-founder Sam Bankman-Fried.
In addition to Bankman-Fried, the SEC sued other significant cryptocurrency players, including Binance, its CEO Changpeng Zhao, and Coinbase.Many industry participants and advocacy groups have urged the SEC to set clear regulatory rules to encourage innovation in the United States.The SEC is apparently issuing subpoenas as part of its push to categorize Ethereum (ETH) as a securities under its regulatory scope. “[T]here still are those who would like to whittle away at the SEC’s disclosure regime,” the chairman of the SEC remarked.
In recent years, the SEC has made headway in allowing cryptocurrency-related exchange-traded products for US exchanges, including investment vehicles tied to ETH and Bitcoin futures, as well as the first spot Bitcoin exchange-traded funds in January.
In a separate event, the SEC has again delayed the deadline for Grayscale’s Ethereum Futures Trust exchange-traded fund (ETF) clearance.The SEC said that the previously scheduled deadline of March 31 will be moved to May 30.Grayscale, a digital asset management firm, has suggested an ETF that invests in Ethereum futures contracts.The SEC’s decision to extend the deadline follows a previous deferral in December 2023, when it requested additional public input on whether the ETF should be listed.
Grayscale planned to issue and trade shares of their Ethereum Futures Trust ETF under New York Stock Exchange Arca Rule 8.200-E in September 2023.Bloomberg ETF expert James Seyffart suggested that Grayscale may be utilizing its futures ETF application to influence the SEC’s decision to approve the spot Ether ETF.If the SEC approves Grayscale’s futures ETF, it could bolster Grayscale’s case for the approval of its spot Ether ETF proposal.Furthermore, the SEC has postponed its judgment on whether to approve Grayscale’s spot Ether ETF, opening the application for public comment on January 25.