Gary Gensler Time needed for Ethereum ETF listing severe lack of information disclosure in the crypto industry
SEC Chairman Gary Gensler accepted an interview with CNBC, brushing off the reasons for approving Ethereum and sharply criticizing the lack of information disclosure in the cryptocurrency industry.
Gary Gensler: Insufficient disclosure by cryptocurrency exchanges
Gary Gensler remains highly critical of cryptocurrency exchanges, pointing out that even if exchanges disclose the risks of their products to retail investors, the SEC may still continue to take enforcement actions against these exchanges.
He stated that cryptocurrency exchanges that provide disclosure information may still face regulatory action if they are involved in “market manipulation.” If these exchanges publish “misleading” information that leads traders to invest in products they wouldn’t have otherwise invested in, they will not be immune from prosecution. Simply disclosing information may not protect these wrongdoers.
Gensler also emphasized that most cryptocurrency companies do not disclose information at all, and the way exchanges operate has never been allowed on traditional financial market trading platforms.
Ethereum ETF listing will take time
In fact, Gary Gensler briefly touched on the ETF issue or turned to criticizing the proliferation of cryptocurrency scams.
Regarding the approval of an Ethereum ETF, he said:
Ethereum futures have been trading on the CME for over three years, and SEC staff have carefully studied this and approved it under 19b-4. The S-1 form will still take some time and is currently being worked on.
Bloomberg ETF analysts estimate that an Ethereum spot ETF could be launched in early July.
Criticizing competing coin ETFs
Jim Cramer also mentioned that many competing coins have daily trading volumes in the millions of dollars, and whether the United States should have some kind of traditional financial product to capture this trading volume.
Gary Gensler criticized this by saying:
Without predicting any possibilities, these tokens, whether those mentioned by Jim Cramer or others, do not disclose the information needed for investment decisions. In addition, these exchanges are doing things that we will never allow the New York Stock Exchange to do.
Furthermore, Gensler also hinted that the consecutive imprisonment of cryptocurrency executives including Do Kwon and SBF repeatedly demonstrates the severe lack of information disclosure in the cryptocurrency industry.
