Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC), is expressing exasperation over the disproportionate amount of questions he receives about cryptocurrency compared to traditional finance. In a recent appearance on CNBC's Squawk Box, Gensler highlighted the "outsized ratio" of queries about crypto, considering its relatively small size in comparison to the broader financial market.

Gensler emphasized that while the crypto market is valued at around $2.4 trillion, it pales in comparison to the $110 trillion capital market overseen by the SEC. He pointed out that despite its smaller size, much of the crypto market operates outside of U.S. securities laws, leading to a disproportionate number of scams and fraudulent activities relative to its market capitalization.

Addressing questions from Andrew Ross Sorkin, Gensler pointed out the media's focus on crypto-related topics, which he believes contributes to the high number of inquiries he receives on the subject. He noted that during his numerous appearances on financial shows, the majority of questions tend to revolve around crypto rather than traditional financial matters.

Gensler also faced questions about the SEC's recent actions, including a Wells notice issued to Robinhood regarding its crypto listing and custody services. While he refrained from commenting on specific cases, he emphasized the importance of ensuring investors receive necessary disclosures, especially in the crypto space where many tokens may be considered securities under U.S. law.

In response to criticism from Paul Grewal, Coinbase's legal chief, regarding the classification of tokens as securities, Gensler defended the SEC's position and stressed the importance of accurate disclosures and regulatory compliance in the crypto industry.

Despite repeated inquiries about the classification of Ether and the potential approval of a related exchange-traded fund (ETF), Gensler remained non-committal, stating that such decisions would be made by the SEC commissioners at the appropriate time.

As Gensler faces scrutiny from lawmakers and industry stakeholders alike, he maintains that the SEC's actions are guided by a commitment to upholding securities laws and protecting investors. The SEC's increased focus on crypto-related enforcement actions reflects its determination to address potential risks and violations within the rapidly evolving digital asset landscape.