Former SEC Chairman Gary Gensler recently accepted an interview with CNBC, expressing a pessimistic stance on the 'quarterly financial report reform' promoted by the Trump administration, believing that market volatility will intensify as a result. At the same time, he reiterated the necessity of strict enforcement against cryptocurrencies during his tenure, as transparency is the foundation for maintaining a healthy market.
Quarterly financial reports or semi-annual reports: Transparency or burden?
Gensler, making a long-awaited return to the public eye, responded to CNBC's inquiry about his views on Trump's plan to abolish quarterly financial reports, stating: 'The United States has implemented the quarterly financial report system for 55 years, which not only provides a stable flow of information to the market but is also a crucial reason for the success of the capital market.'
He believes that transparency helps investors assess corporate value, and this is also a major reason why the US has the most robust capital markets in the world:
If we change from quarterly financial reports to biannual ones, it will become more difficult for investors to understand market dynamics and company operations, and volatility will consequently increase.
He admitted that corporate disclosure does indeed incur related costs, but emphasized that this move also creates "huge public benefits," helping the economy to operate better.
(Trump draws on the long-term management philosophy of Chinese companies, urging the SEC: cancel quarterly reports and switch to semi-annual reports)
The tug-of-war between the public market and the private market
When discussing the decline in IPOs and the lack of long-term investment vision in the US market, Gensler held an opposing view, citing that large companies have invested significant amounts of money in artificial intelligence.
Looking at all these expenditures now, these large-cap companies' annual investment in artificial intelligence could reach 200 billion to 300 billion dollars.
He also emphasized that the liquidity in the US open market reaches 60 trillion to 70 trillion dollars, far exceeding the scale of European countries, demonstrating the success of institutional design.
AI boom and market concentration risk
The host mentioned that NVIDIA's market value surpasses the total value of the London Stock Exchange, and the top ten stocks account for about 40% of the S&P 500 index, reflecting a high concentration phenomenon. Gensler acknowledged that this proportion is indeed high, but reminded that this is part of the natural cycle of the market.
He also pointed out that AI investment has become an important engine driving the US economy, with data center and chip spending possibly contributing to half of the economic growth in the first half of the year. Although this trend is currently affected by bubble concerns, he believes it precisely reflects the long-term investment spirit of the US market.
Self-assessment of crypto regulation performance: feeling proud
Regarding the policy differences between the new and old administrations at the SEC, Gensler stated, "Elections have their natural results," but he is proud of the reforms he achieved during his tenure, especially in shortening the stock settlement cycle and improving market efficiency.
Regarding the host's mockery that "crypto operators express strong joy at Gensler's departure," he stated that the core of regulation is investor protection, and he has always been committed to that part:
Apart from Bitcoin, most tokens lack fundamental support, are highly speculative, and carry extreme risks. I have handled hundreds of fraud cases, including the collapse of FTX.
This interview showcases the intense tug-of-war in US financial regulation between different administrations, with the Trump administration and current SEC Chairman Paul Atkins advocating for relaxed disclosures and support for emerging industries; while Gensler emphasizes transparency and investor protection, maintaining a strict attitude even after leaving office. He has never wavered from the beginning to the end.
(The SEC mistakenly deleted former Chairman Gensler's crypto enforcement messages, sparking conspiracy theories)
This article features former SEC Chairman Gensler interviewed: Trump's financial report reform exacerbates market turbulence, the crypto field remains highly speculative. Originally appeared in Chain News ABMedia.
