Gensler believes SEC might encourage crypto disclosures

Chairman Gary Gensler said at a Thursday Senate Banking Committee hearing that the Securities and Exchange Commission has the ability to promote additional crypto filings.

SEC Chairman Gary Gensler told Sen. Cynthia Lummis (R-Wyo.) on Thursday that the agency may allow “a new set of disclosures” for crypto securities.

“The responsibility to disclose should rest with the entrepreneurs. We now have the authority to assist with a new set of disclosures, as stated by Gensler. The public does not have a disclosure responsibility when purchasing a stock on the New York Stock Exchange, and they should not have a disclosure obligation when purchasing a crypto security token.

In the summer, Lummis, a committee member, and Senator Kirsten Gillibrand (D-N.Y.) introduced a comprehensive cryptocurrency regulatory bill. The Wyoming representative requested Gensler’s advice on the necessity for disclosures in digital asset markets and on a portion of her legislation.

“I believe the investor should be exempt from duty. It’s the intermediates and then it’s the middlemen,” Gensler said, adding that the SEC has separate disclosure requirements for asset-backed securities and stocks.

Lummis said that she and Gillibrand do not anticipate their crypto measure to be heard by the committee before the end of the year and would resubmit it in January.

“Between now and January, we’d want to ensure that we’ve worked with you and your team to ensure that the law has provisions on which we can all agree,” Lummis said.

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