During a recent appearance on CNBC, Gary Gensler, the chairman of the US Securities and Exchange Commission, stressed that many assets are securities under the law.
"Many of these tokens are securities under the law of the land (as interpreted by the US Supreme Court). So, we follow that law," he stressed.
The SEC boss went on to say that the investors are not getting the required disclosures about those assets.
Gensler described crypto as a "small piece" of the global markets. At the same time, he says that it is an "outsized piece" of "scams and frauds."
Yuri Molchan"Much of this field is non-compliant with the protections of our securities laws," Gensler stressed.
While addressing Robinhood Markets's Wells notice from the SEC, Gensler stressed that the agency has "a really important responsibility" as the cop on the beat in order to make sure that investors who buy securities get proper disclosures and protections.
The SEC has been harshly criticized by the Chamber of Digital Commerce for targeting Robinhood's crypto business, slamming its recent move as an "unchecked regulatory overreach."
Apart from Robinhood, the SEC is currently engaged in legal battles with a slew of other industry heavyweights, including Coinbase and Ripple.
Ethereum backer Consensys recently turned the tables on the SEC by suing the agency over its intention to classify Ether as a security. During the interview, Gensler once again dodged a question about the legal status of the second-largest cryptocurrency.
U.Today Editorial Team
Vladislav Sopov
Dan Burgin