Crypto is ‘rife with bad actors’
SEC Chairman Gary Gensler reiterated his long-standing criticism of the cryptocurrency industry, calling it “riddled with bad actors” during an interview with Bloomberg TV on Wednesday.
Reflecting on his tenure, Gensler said he was proud of the SEC’s crypto enforcement actions, noting their consistency over the years.
Gensler highlighted the foundation laid by his predecessor, Jay Clayton, who led 80 crypto-related enforcement actions from 2017 to 2020. During Gensler’s four years of leadership, the SECOND has launched around 100 actions, maintaining a consistent approach to combating fraud and malpractice in a rapidly changing sector.
Crypto makes up less than 1% of U.S. financial markets, but it is riddled with “scams,” Gensler said.
“I’ve never seen a field so concerned with sentiment and less about fundamentals,” Gensler said. “Of these 10,000 to 15,000 projects, many will not survive. It’s like venture capital investments. They will not survive. »
Gensler’s comments come as he prepares to resign on January 20, the day of President-elect Donald Trump’s inauguration.
Gensler and Crypto
Gensler, a Biden appointee, has been vocal about his skepticism of crypto regulation. He came out forcefully against FIT21 bill after it passed the House.
The relationship between the crypto industry and Gensler has been controversial. The industry generally views Gensler with skepticism and frustration. Many believe he is strict application approach and classifying most crypto assets as securities has stifled innovation and created legal uncertainty.
Gensler has repeatedly asserted that most cryptocurrencies qualify as securities, urging companies to register with the SEC.
Critics within the industry say compliance is impractical due to regulatory frameworks designed for traditional financial entities.
Reflecting on his tenure, Gensler acknowledged the challenges but emphasized the SEC’s role in building on previous efforts.
“I am proud of what we have accomplished, but there is still work to do,” he said.
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