In a recent interview with CNBC, Securities and Exchange Commission (SEC) chairman Gary Gensler voiced frustration over what he perceives as an undue emphasis on cryptocurrency by the media, particularly in his interviews.
During the nine-minute segment, Gensler pointedly addressed the interviewer, Andrew Ross Sorkin, for what he described as an “outsized ratio” of questions concerning the crypto sphere. Sorkin suggested that the media’s attention to crypto might align with the SEC’s own scrutiny of the industry, but Gensler disagreed, emphasizing the relatively small size of the crypto market compared to traditional capital markets.
Gensler highlighted the disparity in coverage, noting that despite crypto’s market cap of $2.3 trillion, it pales in comparison to the $110 trillion value of traditional stocks and bonds. He attributed journalists’ focus on crypto to its disproportionate involvement in scams and fraudulent activities within the broader financial landscape.
Throughout the interview, Sorkin did indeed pose more questions about crypto, including inquiries about the SEC’s stance on Ether (ETH) as a security and its recent actions against platforms like Robinhood for alleged securities violations. Gensler’s responses remained indirect, though he reiterated the SEC’s view that many crypto tokens fall under the purview of securities laws.
Over the past year and a half, the SEC has initiated numerous enforcement actions against major crypto entities, including exchanges like Binance, Coinbase, and Kraken, as well as stablecoin issuers like Paxos and development teams such as Uniswap Labs. These actions have prompted some firms, like Consensys, to proactively litigate against the SEC to clarify legal ambiguities in the crypto space.
Gensler defended the SEC’s approach, stating that the agency refrains from publicly accusing entities of legal violations unless it brings formal charges. He emphasized the risks associated with crypto investments, noting the losses suffered by many investors in the sector.
Despite his agency’s recent approval of Bitcoin spot ETFs, Gensler reiterated his skepticism about Bitcoin as an asset, characterizing it as fundamentally centralized during subsequent remarks on CNBC.
As debates surrounding cryptocurrency regulation continue, Gensler’s comments underscore the challenges in balancing regulatory oversight with the rapidly evolving crypto landscape.