U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler found himself criticizing the crypto industry again on live television on Wednesday, but this time the regulator appeared to use a noticeably softer language when asked about potential upcoming crypto ETFs.
“These tokens… have failed to provide you with the appropriate information that you not only need to make your investment decisions, but also those required by law,” Gensler said on CNBC when interviewed by Jim Cramer on a multitude of hit cryptocurrencies listed by TV. personality.
Although Gensler’s tone was undeniably critical, his implication that tokens like Solana piece of money BONK could being considered an acceptable investment provided adequate information is provided is a much less harsh tone than the SEC chief has sung in the past.
Just a few months ago, Gensler rejected the crypto market as an industry riddled with scams and full of “peddlers” and “fraudsters” that investors should best avoid.
His apparent change in rhetoric comes just weeks after the SEC, in an eleventh-hour about-face, abruptly approved spot trading Ethereum ETFs on Wall Street. For months, such an outcome appeared increasingly unlikely, given recent allegations that the SEC internally considers Ethereum to be an illegally unregistered security for over a year.
While questions abound as to why Gensler and the SEC changed course on Ethereum so suddenly, many believe the move was a direct result of changing political wind in Washington. As the 2024 elections approach and the crypto lobby abandons some $160 million In tight congressional races, many lawmakers managed to to kiss the industry rather than fighting it.
Some financial analysts predict that by approving Ethereum spot ETFs, the SEC opened the floodgates to other altcoin spot ETFs, including Solana And XRP.
On Wednesday, Jim Cramer asked Gensler about the likelihood of imminent trading of the BONK ETF on Wall Street – a question that the SEC’s hair delicately dodged.
In addition to crypto tokens, Gensler has also criticized crypto exchanges from the floor. New York Stock Exchange.
“These crypto exchanges are doing things that we would never allow this New York Stock Exchange to do,” Gensler said. “Our laws do not allow you to trade with your customers.”
The regulator has a long accused leading frontline crypto exchanges or using publicly available knowledge about pending on-chain transactions to beat other users bidding for block space.
Edited by Andrew Hayward
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