SEC Chairman Gary Gensler stated at a conference held at Columbia Law School that cryptocurrency companies need to be “cleaned up” in order to ensure efficiency and protect investors.
According to Gensler, financial firms’ disclosure of information is crucial for maintaining efficient markets and safeguarding investors. However, some players in the cryptocurrency industry are attempting to avoid registering with the SEC, which would require them to disclose information.
“No registration means no mandatory disclosure of information. Many would agree that the cryptocurrency market could use a little disinfecting,” Gensler remarked.
In the past year, the SEC has sued major Bitcoin exchanges Binance, Coinbase, and Kraken for allegedly violating securities laws.
Coinbase has been advocating for the SEC to establish clear guidelines for the industry for several years. The company filed a petition with the SEC in July 2022 and went to court in April 2023.
