Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
SEC Chair Gary Gensler, speaking at a conference hosted by Columbia Law School on Friday, highlighted the critical role of transparency and regulatory compliance in the financial markets, with a particular focus on the burgeoning cryptocurrency sector.
“There are participants in crypto securities markets that seek to avoid these registration requirements,” Gensler stated, emphasizing the consequences of such avoidance, The Block reported.
He further suggested that the crypto market is in dire need of regulatory clarity and oversight.
“No registration means no mandatory disclosure. Many would agree that the crypto markets could use a little disinfectant,” he added.
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Gensler has consistently maintained that cryptocurrency exchanges and related firms must align with the regulatory framework that governs traditional financial institutions, advocating for their registration with the SEC.
This stance has led to legal actions against prominent crypto platforms like Coinbase Inc. (NASDAQ:COIN) and Kraken, which the SEC accuses of operating without the requisite registration as exchanges, brokers, dealers, and clearinghouses.
These platforms, however, have expressed concerns over the feasibility of complying with SEC registration under the current regulatory landscape.
The SEC Chair also delved into broader issues of transparency in his speech, reiterating the importance of disclosures related to executive compensation and the potential risks posed by climate change and cyber threats.
This focus on comprehensive disclosure requirements aligns with the SEC’s recent move to adopt new rules that compel companies to disclose climate-related risks, marking a significant step towards greater transparency and investor protection in all sectors of the economy.
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