Former SEC Chairman Gensler interviewed: Trump’s financial report reform exacerbates market volatility, and the encryption field remains highly speculative.

Gary Gensler, former chairman of the U.S. Securities and Exchange Commission (SEC), recently accepted an interview with CNBC, expressing an optimistic stance regarding the "quarterly financial report reform" promoted by the Trump administration, believing that market fluctuation will intensify as a result. At the same time, he reiterated the necessity of strict enforcement on crypto assets during his tenure, as transparency is the foundation for maintaining market health.

Quarterly financial reports or semi-annual financial reports: Transparency or burden?

Gensler has reappeared before the public after a long time. When asked by CNBC about his views on Trump's plan to push for the termination of quarterly financial reports, he pointed out: "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 key reason for the success of the capital market."

He believes that transparency helps investors assess the value of a company, and this is also the main reason why the United States has the most robust capital markets in the world:

If we change from quarterly financial reports to biannual reports, it will become more difficult for investors to understand market dynamics and the company's operational status, and the Fluctuation will also increase.

He admitted that corporate disclosure of information does indeed incur related costs, but emphasized that this move also creates "huge public benefits," which helps the economy operate better.

(Trump draws on the long-term business philosophy of Chinese enterprises and calls on the SEC: cancel quarterly reports and switch to semi-annual reports)

The tug-of-war between the public market and the private placement market.

When discussing the phenomenon of IPO decline and the lack of long-term investment vision in the U.S. market, Gensler held an opposing view, citing large companies that have invested heavily in artificial intelligence as an example.

Looking at all these expenses now, these large-cap companies may be investing between 200 billion to 300 billion dollars annually in artificial intelligence.

He also emphasized that the liquidity of the US open market reaches 60 trillion to 70 trillion dollars, far exceeding the scale of various European countries, demonstrating the success of the institutional design.

AI Hype and Market Concentration Risk

The host mentioned that NVIDIA's market value has surpassed that of the entire London Stock Exchange, and that the top ten stocks account for about 40% of the S&P 500 index, highlighting a high concentration phenomenon. Gensler acknowledged that this proportion is indeed high, but reminded that it is part of the natural cycle of the market.

He also pointed out that AI investment has become an important engine driving the U.S. economy, with data center and chip spending potentially contributing to half of the economic growth in the first half of the year. Although this wave is currently affected by concerns of a bubble, he believes that this precisely reflects the long-term investment spirit of the U.S. market.

Self-assessment of encryption regulation report card: Feel proud

Regarding the policy differences between the SEC under the old and new administrations, Gensler stated that "elections have their natural outcomes," but he is proud of the reforms during his tenure, especially in shortening the stock settlement cycle and improving market efficiency.

In response to the host's teasing that "crypto operators expressed strong joy at Gensler's departure," he stated plainly that the core of regulation is investor protection, and he has always been dedicated to that aspect:

Apart from Bitcoin, most tokens lack fundamental support, are highly speculative, and carry extremely high risks. I have handled hundreds of fraud cases, including the collapse of FTX.

This interview showcases the intense tug-of-war in U.S. financial regulation between different administrations. The Trump administration and current SEC Chairman Paul Atkins advocate for loosening disclosure requirements and supporting emerging industries, while Gensler emphasizes transparency and investor protection, maintaining a strict stance even after leaving office. Throughout, there has been no wavering.

(The SEC mistakenly deleted former chairman Gensler's encryption enforcement messages, sparking conspiracy theory associations)

In this article, former SEC Chairman Gensler was interviewed: Trump's financial report reform intensifies market fluctuations, and the crypto sector remains highly speculative. This originally appeared in Chain News ABMedia.