SEC Chair Gensler on Kraken Settlement, Crypto Oversight

What is the primary issue with crypto storefronts offering returns without proper disclosure?

• They operate without proper registration and disclosure.

• They mislead the public about potential returns.

• They offer too high returns.

• They are not profitable.

Why is disclosure important in the context of crypto investments?

• To comply with international laws.

• To increase the value of crypto tokens.

• To ensure investors understand the risks involved.

• To attract more investors.

What must crypto exchanges do to operate legally in the U.S.?

• Offer higher returns.

• Limit their operations to international markets.

• Register as a security and disclose risks.

• Partner with banks.

How did Coinbase respond to the enforcement actions against other platforms?

• By claiming their operations are different.

• By shutting down their services.

• By merging with another company.

• By increasing their returns.

What is the significance of the economic realities over labels in crypto platforms?

• Labels determine the success of a platform.

• Economic realities dictate the need for compliance.

• Labels are more important than economic realities.

• Economic realities have no impact on compliance.

What is the main concern with crypto platforms operating like broker dealers?

• They offer low returns.

• They commingle customer funds with their business operations.

• They compete with traditional banks.

• They charge high fees.

How does the SEC coordinate with other regulatory agencies?

• By merging with them.

• By sharing information and guidance.

• By competing with them.

• By setting joint regulations.

What is the potential risk to the banking system from non-compliant crypto activities?

• Decreased bank profits.

• Financial instability.

• Loss of public trust.

• Increased interest rates.

What role does the SEC play in the regulation of crypto markets?

• It manages crypto exchanges.

• It provides loans to crypto companies.

• It ensures transparency and protects investors.

• It sets interest rates for crypto loans.

What is the SEC's approach to CO2 emissions disclosure?

• To leave it to individual companies.

• To bring consistency and comparability to disclosures.

• To enforce strict penalties.

• To ignore it.