SEC Chairman Gary Gensler Appears Weary of Crypto Queries

SEC Chairman Gary Gensler Appears Weary of Crypto Queries

Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), seems to be growing tired of fielding questions about crypto. This sentiment was evident during his interview with CNBC on May 7, 2024.

Gensler told the host, Andrew Ross Sorkin, that crypto is just a small part of the market overseen by the SEC. "We oversee a $110 trillion capital market. Crypto is just a small part of our overall market, but it's a big part of the scams, frauds, and issues in our market," he said.

He also pointed out to Sorkin, "I've been on your show several times, right? And every time, you always ask about crypto."
Adding, "I guess this interview will largely be about crypto. Yet, the capital market is worth $110 trillion. So, it's also about the financial media's focus." Gensler then dodged consecutive questions, especially those related to the SEC's notice to Robinhood, accusing the service of violating securities laws with its crypto listing and storage services. He also declined to answer whether Ether is classified as a security or not, and whether the SEC will approve related ETFs. He only said that submissions would be made "at the appropriate time" by the five SEC commissioners.

Gensler also defended himself against accusations from House Financial Services Chair Patrick McHenry that he was "misleading Congress" by "refusing to answer" questions about SEC's ETH classification. McHenry claimed that Gensler's refusal to answer was "a deliberate attempt to mischaracterize" SEC's position.

Gensler Acknowledges Increased Media Attention on Crypto

Gensler's responses further demonstrate his discomfort in addressing crypto questions compared to broader market inquiries regulated by the SEC. Although he avoided questions about crypto, Gensler acknowledged that financial media indeed amplifies coverage related to crypto compared to traditional securities markets, thereby enhancing perceptions of the importance of this industry.

Conclusion

Gary Gensler's weariness with crypto-related inquiries, as observed in his recent CNBC interview, underscores the complex and evolving landscape of digital assets within regulatory frameworks. Despite crypto being a fraction of the overall market overseen by the SEC, its prominence in discussions highlights the challenges and concerns surrounding scams and frauds within the industry. Gensler's reluctance to engage extensively on crypto matters, coupled with his focus on the broader financial market, suggests a balancing act between addressing pressing issues and maintaining regulatory oversight across diverse sectors. Moreover, his acknowledgment of the heightened media attention on crypto reflects the evolving narrative and significance of digital assets within the financial landscape. As discussions around crypto continue to evolve, regulators like Gensler face the ongoing task of navigating complexities while ensuring investor protection and market integrity.

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