Gary Gensler has described the cryptocurrency market as “rife with bad actors.”
The top financial cop made the remarks in a January 8 interview with Bloomberg TV, in which he discussed the enforcement actions under his leadership and addressed persistent compliance issues in the crypto space.
In the sit-down with David Gura, the 67-year-old, who is due to depart the U.S. Securities and Exchange Commission (SEC) in about a week, outlined the challenges posed by the digital asset industry, which, despite making up less than 1% of the $120 trillion U.S. capital markets, has attracted significant attention from regulators and the public.
Since taking office, Gensler has overseen 100 enforcement actions related to crypto, building on the work of his predecessor, Jay Clayton, who initiated 80 such cases during his tenure. The actions targeted fraud, scams, and non-compliance with securities laws.
According to him, most digital currencies meet the criteria for securities and should be regulated as such. Additionally, he claimed that many crypto projects operate outside legal boundaries, which exposes investors to significant risks.
The former MIT professor also questioned the viability of most cryptocurrencies in the market, suggesting that many of them won’t survive. Further, he called out the sector for being overly driven by sentiment rather than fundamentals, a factor he believes hugely contributes to its volatility.
The SEC chair has faced considerable criticism from pro-crypto figures for his regulation-by-enforcement approach to the industry.
Some, like Minnesota lawmaker Tom Emmer, previously described his tenure as “the most destructive and lawless” in history. Others, like Ripple CEO Brad Garlinghouse, described it as a ”reign of terror,” pushing the industry to rally behind pro-crypto candidates in the November polls, which saw Donald Trump return to the White House and the United States gain the most crypto-friendly Congress ever.
On his part, Gensler accepted the personal challenges of leading a high-profile regulatory body, remarking, “If you’re not willing to be attacked, you can’t debate policy.” However, he rejected his characterization as anti-crypto, pointing to his academic background at MIT, where he studied and taught blockchain technology, as evidence of his interest in the sector.
The post Departing SEC Chair Warns of Bad Actors in Crypto Market appeared first on CryptoPotato.
The top financial cop made the remarks in a January 8 interview with Bloomberg TV, in which he discussed the enforcement actions under his leadership and addressed persistent compliance issues in the crypto space.
A Tenure Marked by Crypto Scrutiny
In the sit-down with David Gura, the 67-year-old, who is due to depart the U.S. Securities and Exchange Commission (SEC) in about a week, outlined the challenges posed by the digital asset industry, which, despite making up less than 1% of the $120 trillion U.S. capital markets, has attracted significant attention from regulators and the public.
Since taking office, Gensler has overseen 100 enforcement actions related to crypto, building on the work of his predecessor, Jay Clayton, who initiated 80 such cases during his tenure. The actions targeted fraud, scams, and non-compliance with securities laws.
According to him, most digital currencies meet the criteria for securities and should be regulated as such. Additionally, he claimed that many crypto projects operate outside legal boundaries, which exposes investors to significant risks.
The former MIT professor also questioned the viability of most cryptocurrencies in the market, suggesting that many of them won’t survive. Further, he called out the sector for being overly driven by sentiment rather than fundamentals, a factor he believes hugely contributes to its volatility.
Debunking the “Anti-Crypto” Label
The SEC chair has faced considerable criticism from pro-crypto figures for his regulation-by-enforcement approach to the industry.
Some, like Minnesota lawmaker Tom Emmer, previously described his tenure as “the most destructive and lawless” in history. Others, like Ripple CEO Brad Garlinghouse, described it as a ”reign of terror,” pushing the industry to rally behind pro-crypto candidates in the November polls, which saw Donald Trump return to the White House and the United States gain the most crypto-friendly Congress ever.
On his part, Gensler accepted the personal challenges of leading a high-profile regulatory body, remarking, “If you’re not willing to be attacked, you can’t debate policy.” However, he rejected his characterization as anti-crypto, pointing to his academic background at MIT, where he studied and taught blockchain technology, as evidence of his interest in the sector.
The post Departing SEC Chair Warns of Bad Actors in Crypto Market appeared first on CryptoPotato.
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