Securities and Exchange Commission Chair Gary Gensler has once again criticized the crypto market, suggesting that it could benefit from more transparency.

During a recent speech at the Columbia Law School conference, Gensler emphasized the importance of disclosures in financial markets, citing their role in enhancing market efficiency and safeguarding investors. He noted that some participants in the crypto securities markets aim to evade registration requirements, leading to a lack of mandatory disclosures. Gensler remarked that introducing transparency could be beneficial for the crypto markets, akin to applying "disinfectant."

Gensler has previously cautioned that crypto exchanges should register with the SEC and comply with the same regulations as traditional financial entities. The SEC has taken action against platforms like Coinbase and Kraken for allegedly operating without proper registration. In response, crypto firms have argued the challenges of registering with the SEC.

In his speech, Gensler also highlighted the importance of disclosures related to executive compensation, climate risks, and cybersecurity. He mentioned the recent SEC rule adoption mandating companies to disclose climate-related risks.

During a Q&A session following his speech, Gensler emphasized the critical role of disclosures, mentioning the collaborative efforts between the SEC and the Commodity Futures Trading Commission (CFTC) in regulating crypto. He acknowledged the CFTC's expertise in derivatives regulation and indicated ongoing discussions with Chair Behnam regarding regulatory matters.

Recent debates between the SEC and CFTC have revolved around the classification of ether as either a security or a commodity. While Behnam from the CFTC views ether as a commodity, the SEC's stance on its classification remains less definitive. Behnam expressed concerns that labeling ether as a security could create compliance challenges for CFTC registrants offering ether futures contracts.