The head of the U.S. Securities and Exchange Commission (SEC) has criticized crypto exchanges for engaging in practices that would never be allowed on the New York Stock Exchange (NYSE).
During a recent interview on CNBC’s Squawk Box, SEC Chair Gary Gensler expressed concerns that crypto exchange platforms are failing to provide investors with the necessary disclosures required by law, potentially trading against consumers.
Gensler emphasized the importance of transparency in securities markets, citing President Roosevelt’s creation of the commission to ensure investors receive proper disclosure. He highlighted the lack of disclosure in the crypto markets and the need for exchanges to be regulated to prevent fraud and manipulation, likening it to the practices prohibited on the NYSE.
Addressing the approval of spot Ethereum (ETH) exchange-traded funds (ETFs), Gensler acknowledged that the process of launching these ETFs may take time, without specifying any deadlines.
While Bitcoin (BTC) ETFs were approved by the SEC in January, opening the door to significant inflows for the leading cryptocurrency, Gensler suggested that similar approval for ETH ETFs is still in progress.
As investors navigate the evolving landscape of digital assets, it is crucial to conduct thorough research and due diligence before engaging in high-risk investments. The Daily Hodl encourages readers to exercise caution and take responsibility for their financial decisions in the volatile cryptocurrency market.