SEC chairman blames reporters for asking him so much about crypto

One of crypto’s most powerful government foes believes reporters are questioning him about the growing asset class more than necessary.

Securities and Exchange Commission (SEC) Chairman Gary Gensler appeared for a nine-minute interview with CNBC on Wednesday and blamed the host for asking an “inordinate ratio” of crypto-centric questions.

Gensler is tired of questions about cryptography

Gensler interviewer Andrew Ross Sorkin suggested that reporters’ attention to the industry may be commensurate with the SEC’s attention to the space. The president did not agree.

“No, it’s a function of where your attention is,” Gensler replied. “I’ve been on your show, like a dozen times, and every show you ask about crypto.”

Gensler noted how crypto, which currently has a market cap of $2.3 trillion, is just a drop in the bucket next to the $110 trillion capital markets made up of traditional stocks and bonds.

In relation to its size, he said that crypto represents a “disproportionate share of the scams, fraud and problems” across the market, which may also help explain the narrow focus of journalists on the space.

“My guess is that this is going to be a majority crypto interview, while capital markets are $110 trillion,” Gensler said. “So it’s also about where the financial means are focused.

Indeed, Sorkin asked more about crypto, including whether the SEC considers Ether (ETH) a security and about the agency’s most recent Wells notice issued against crypto and stock trading platform Robinhood for alleged violations of the securities law. Gensler’s answers were indirect as usual, though he still insisted that “many” crypto tokens are securities under the law.

SEC Focus Crypto Clear

Over the past 18 months, the SEC has filed several Wells lawsuits and notices against the world’s largest crypto companies with ties to the United States.

These include crypto exchanges like Binance, Coinbase, Kraken, and Robinhood, along with development teams like Uniswap Labs and stablecoin issuers like Paxos.

In 2023 alone, the SEC filed 43 enforcement actions against digital asset market participants, according to Cornerstone Research. The flurry of shares has inspired other crypto companies, such as Consensys, to preemptively sue the SEC before being accused of dealing with what is still a legal gray area.

“We don’t talk about whether someone, in our opinion, is not following the law unless we actually make a case,” Gensler said.

“A lot of people have lost their hard-earned funds in the field that you seem to be so fascinated by,” he added.

Gensler has not refrained from commenting on crypto in his capacity, including in his roles as chairman.

Following his agency’s approval of spot Bitcoin ETFs in January, Gensler published an unusual blog post claiming that the agency still did not approve Bitcoin as an asset. Speaking on CNBC the next day, he also argued that Bitcoin is fundamentally centralized.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers on Bybit – Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!