Gary Gensler advised crypto industry to use ‘disinfectant’

During a March 22 speech at a Columbia Law School conference, U.S. SEC Chairman Gary Gensler pointed to the general need for disclosure in financial markets. Gensler focused on the need for disclosures related to executive compensation, climate and cyber risks, as the SEC voted earlier this month to adopt rules requiring companies to disclose climate-related risks. In the chairman’s view, disclosure ensures more efficient markets and protects investors. “Some participants in crypto securities markets seek to avoid these registration requirements.” Gensler also explained that the lack of registration means no mandatory information disclosure. “Many would agree that the crypto markets could use a little disinfectant.” Gensler has consistently warned that cryptocurrency exchanges must register with the agency and that cryptocurrency firms are subject to the same rules as traditional financial companies. Under Gensler’s leadership, the SEC is actively increasing pressure on the cryptocurrency industry. The primary U.S. exchange regulator has already filed lawsuits against Binance and Coinbase, the two largest cryptocurrency exchanges. Ahead of the launch of Bitcoin ETFs, Gensler also criticized cryptocurrencies, saying that investing in them can only be risky and unstable. After Bitcoin (BTC) had updated its all-time high, Gensler compared Bitcoin to a roller coaster and noted that evaluating the asset’s fundamentals was necessary.