The chairman of the US Securities and Exchange Commission (SEC) says crypto exchanges are doing what the New York Stock Exchange (NYSE) should never do.
In a new interview on CNBC’s Squawk Box, SEC Chairman Gary Gensler says crypto exchange platforms are not giving investors the proper disclosures that are required by law and could trade against consumers.
“At this point, without prejudice to anyone, these tokens have not given you the information that you not only need to make your investment decisions, but also that are required by law.
It’s a basic concept in our securities markets… and what President Roosevelt did is he created this commission to make sure that you, the investors, get disclosure, and in the crypto markets they don’t give you that disclosure .
And second, that exchanges, like the trading floor of the New York Stock Exchanges, are well regulated to protect against fraud and manipulation, and they do not trade against you. And these crypto exchanges are doing things that we would never let the New York Stock Exchange do. Our laws do not allow you to trade against your customers.”
Gensler also addressed the approval of Ethereum (ETH) exchange-traded funds (ETFs), noting that the decision on the launch of the ETH ETFs could take some time, but did not provide specific dates.
“Ethereum has been trading on the Chicago Mercantile Exchange for over three years and the staff reviewed it closely and it was approved. Now the underlying exchange-traded products still have to go through a process to get disclosure on that, and that will take some time and they are working on that.”
The SEC approved Bitcoin (BTC) ETFs in January, paving the way for billions of dollars of inflows into the top crypto assets by market cap.
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Featured image: Shutterstock/gg_tsukahara/INelson