Gary Gensler: SEC Follows the Law

The crypto industry is facing increased pressure from US authorities, with high-profile enforcement actions fueling concerns of an intensifying crackdown. The arrests of developers behind Samourai Wallet and the Securities Exchange Commission's (SEC) Wells Notice to decentralized exchange Uniswap have crypto advocates crying foul, accusing regulators of overreach.

Adding to the industry's woes, Robinhood's crypto division has become the latest target, receiving a Wells Notice from the SEC over the weekend. The regulatory bombardment only reinforces the narrative that US authorities intend to take down the crypto industry by any means necessary. However, SEC Chair Gary Gensler has pushed back, stating that the agency is merely following the law to uphold investor protections.

In an interview with CNBC, Gensler defended the SEC's recent actions, stating that the agency is tasked with ensuring firms promoting securities products follow the established laws, including upholding investor protections and ensuring appropriate disclosures.

When pressed on what Robinhood users should make of the Wells Notice issued to the company's crypto division, Gensler refrained from commenting on the specific case. However, he addressed the crypto industry more broadly, asserting that the "majority of crypto tokens are securities under the law of the land as interpreted by the US Supreme Court." He maintained that the SEC merely follows that legal precedent.

Gensler reiterated that US crypto investors are not receiving the required disclosures on digital assets. The SEC chair contrasted this lack of transparency with public companies releasing quarterly reports during earnings season, stating that crypto tokens do not offer similar reporting mechanisms, leaving investors potentially in the dark about what they are investing in.