US Securities and Exchange Commission (SEC) Chairman Gary Gensler underlines the need for transparency in cryptocurrency markets. Gensler suggests that the market requires a “disinfectant” to address potential shortcomings. He warns investors against a repeat of historical market crashes due to lack of transparency.
Gary Gensler: These are essential for the cryptocurrency market!
SEC Chairman Gary Gensler gave a speech at the Columbia Law School conference regarding the crypto market. In his speech, Gensler reiterated his stance on the need for transparency in cryptocurrency markets. The SEC Chairman suggested that crypto markets in particular could benefit from “sunshine and disinfectant.” While expressing this opinion, Gensler emphasized the importance of appropriate disclosures made by crypto projects. He highlighted the multifaceted benefits of investors’ access to disclosures mandated by law and regulation.
First, Gensler emphasized that disclosure promotes more efficient markets by facilitating better price discovery. In his view, more information allows prices to more accurately reflect a company’s expectations. The SEC chairman also stated that the disclosure improves confidence in the markets. He pointed out that investors are more inclined to invest their capital when they receive consistent, comparable and reliable disclosure.
Transparency request: Sunlight is the best disinfectant!
cryptokoin.comAs you follow from , Gary Gensler has a negative perspective on the cryptocurrency market. In his recent speech, Gensler talked about the alarming trend of some crypto projects trying to limit the information available to investors. He drew parallels with the 1920s, when there were no federal disclosure requirements. Gensler pointed out that lack of disclosure leads to widespread fraud, manipulation and market abuse. As a result, investors suffered losses and lost faith in the integrity of capital markets, he said. Ultimately, he noted, this led to the market crash.
In parallel, he emphasized that some contemporary voices are advocating further exemptions to the rules requiring registration of IPOs. According to Gensler, no registration means no mandatory disclosure. This raises concerns about transparency and investor protection in cryptocurrency markets. “Sunlight is said to be the best of disinfectants,” Gensler said, echoing U.S. Supreme Court Justice Louis Brandeis’s 1913 opinion. Based on this premise, the SEC chairman concluded that many would agree that crypto markets could benefit from a dose of “disinfectant” to ensure integrity and reduce risks for investors.
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