In a recent speech at a Columbia Law School conference on March 22, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler emphasized the critical role of transparency and disclosure in the crypto industry.

Gensler highlighted the necessity for disclosures concerning executive compensation, climate risks, and cyber risks, aligning with the SEC’s recent adoption of rules mandating climate-related risk disclosures. According to Gensler, such disclosures foster more efficient markets and safeguard investors’ interests.

Notably, Gensler underscored that the absence of registration leads to a lack of mandatory information disclosure, emphasising the importance of regulatory compliance within the crypto space.

Gensler has been consistent in his stance that cryptocurrency exchanges must register with the SEC and adhere to the same regulatory standards as traditional financial institutions.

Under Gensler’s leadership, the SEC has intensified its scrutiny of the cryptocurrency industry, filing lawsuits against major exchanges like Binance and Coinbase, the two largest players in the crypto market.

Moreover, with the impending launch of Bitcoin exchange-traded funds (ETFs), Gensler has voiced concerns about the inherent risks and volatility associated with cryptocurrencies.

Despite Bitcoin reaching new all-time highs, Gensler likened its investment to riding a roller coaster, emphasizing the importance of evaluating the asset’s fundamentals.