Outgoing SEC Chairwoman Warns of Bad Actors in Crypto Market

Gary Gensler has described the cryptocurrency market as “full of bad actors.”

The top financial cop made the remarks in a Jan. 8 interview with Bloomberg TV, in which he discussed enforcement actions under his leadership and addressed persistent compliance issues in the crypto space.

A mandate marked by cryptographic scrutiny

In the meeting with David Gura, the 67-year-old, who is due to leave the US Securities and Exchange Commission (SEC) in a week, outlined the challenges facing the digital asset industry, which, despite clearing less than 1% of the $120 trillion US capital markets, has attracted significant attention from regulators and the public.

Since taking office, Gensler has overseen 100 crypto-related enforcement actions, building on the work of his predecessor, Jay Clayton, who brought 80 cases during his tenure. The actions targeted fraud, scams, and violations of securities laws.

According to him, most digital currencies meet the criteria of securities and should be regulated as such. He further stated that many crypto projects operate outside legal boundaries, exposing investors to significant risks.

“Right now, the crypto market is full of bad actors. We’ve seen that over the past few years, with intermediaries, whether they’re exchanges, brokers or custodians, failing to comply with securities laws and putting the public at risk,” he said. Gensler.

The former MIT professor also questioned the viability of most cryptocurrencies on the market, suggesting that many of them will not survive. He also called out the sector for being too driven by sentiment rather than fundamentals, a factor he believes contributes greatly to its volatility.

Debunk the “Anti-Crypto” label.

The SEC chairman has faced considerable criticism from pro-crypto figures for his approach to regulation by industry enforcement.

Some, like Minnesota lawmaker Tom Emmer, previously described his tenure as “the most destructive and lawless” in history. Others, such as 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 White House and the United States won more crypto. -Friendly Congress ever.

For his part, Gensler accepted the personal challenges of leading a high-profile regulatory body, commenting: “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 proof of his interest in the sector.

“My role as chairman of the SEC is to ensure investor protection and market integrity. It’s not about being pro or anti-crypto; it’s about ensuring that intermediaries and projects comply with the law,” he explained .

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