- SEC Chairman Gary Gensler expresses frustration over the media’s focus on cryptocurrency questions during his recent interview with CNBC.
- Gensler argues that despite the crypto market’s $2.3 trillion market cap, it is still small compared to the $110 trillion capital markets of traditional stocks and bonds.
- The SEC has been actively pursuing legal actions against major crypto companies, with 43 enforcement actions filed in 2023 alone.
SEC Chairman Gary Gensler voices his frustration over the media’s disproportionate focus on cryptocurrency, despite its relatively small size compared to traditional capital markets. This comes amidst the SEC’s increasing legal actions against major crypto companies.
Gensler’s Crypto Question Fatigue
During a recent interview with CNBC, SEC Chairman Gary Gensler expressed his frustration over the media’s focus on cryptocurrency. Despite the crypto market’s current $2.3 trillion market cap, Gensler argues that it is still small compared to the $110 trillion capital markets of traditional stocks and bonds. He also pointed out that crypto represents an “outsized piece of the scams, frauds, and problems” across the market, which may explain the media’s focus on the industry.
SEC’s Active Pursuit Against Crypto Companies
In the past 18 months, the SEC has filed several lawsuits and Wells Notices against the biggest crypto companies with ties to the United States. These include crypto exchanges like Binance, Coinbase, Kraken, and Robinhood, alongside development teams like Uniswap Labs, and stablecoin issuers like Paxos. In 2023 alone, the SEC brought 43 enforcement actions against digital asset market participants, according to Cornerstone Research. This has led to other crypto firms, such as Consensys, preemptively suing the SEC to avoid potential legal grey areas.
Gensler’s Views on Crypto
Despite his frustration with the media’s focus on crypto, Gensler has not refrained from expressing his views on the subject. Following the SEC’s approval of Bitcoin spot ETFs in January, Gensler published a blog post asserting that the agency did not approve of Bitcoin as an asset. He also argued that Bitcoin is fundamentally centralized, contradicting the common belief of it being a decentralized currency.
Conclusion
While the SEC’s active pursuit of legal actions against crypto companies is noteworthy, it is also important to consider Gensler’s views on the subject. His assertion that Bitcoin is fundamentally centralized may have significant implications for the future of the crypto market. As the crypto industry continues to grow, it will be interesting to see how the SEC’s approach evolves.
