Gensler stressed that crypto companies' investment contracts and investment schemes must have full, fair, and truthful disclosure to protect investors.
Underlying Economics, Not Labels, Matters to SEC
Gensler also stated that it doesn't matter if a yield-earning program is called "lend," "yield," or "earn" as long as the underlying economics comply with SEC's rules. He advised investors to control their assets and be aware of the consequences of transferring their tokens to platforms that may go bankrupt.
SEC Urges Crypto Companies to Register and Comply
Gensler emphasized that the SEC is neutral to crypto staking and other yield-earning programs as long as they register with the regulator and make proper disclosures to investors. The SEC also requires crypto companies to register as a securities platform before offering staking-as-a-service.
SEC Commissioner Criticizes Enforcement Action Against Kraken
The SEC's enforcement action against Kraken has faced criticism, including Commissioner Hester Peirce, who called it a "paternalistic" and "lazy" move. However, Gensler emphasized that the SEC uses all available tools to ensure compliance and protect the investing public.
SEC's Stance on Bitcoin ETF
When asked about a possible bitcoin ETF, Gensler said that the path forward is well-trodden but declined to provide further details. He also emphasized that it is time for tech companies and crypto platforms to register their offerings and comply with SEC rules.