Outgoing SEC Chair Gary Gensler doubles down on crypto criticism, emphasizing compliance issues and market volatility.
Gary Gensler’s Tenure and Perspective
As Gary Gensler prepares to step down as SEC Chair, he reflects on his tenure and stance on the cryptocurrency sector. During an interview, Gensler reiterated his view of crypto as a “Wild West” plagued by noncompliance and bad actors.
SEC Enforcement Under Gensler
Gensler highlighted the active role of the Securities and Exchange Commission (SEC) in regulating crypto, citing over 100 enforcement actions during his term. He maintained that the agency’s focus is protecting investors and addressing fraud.
Crypto: Sentiment vs. Fundamentals
Dividing the digital asset market into Bitcoin and “everything else,” Gensler criticized the lack of fundamentals in most projects. He likened many to venture capital investments, predicting that a large portion will not survive.
High-Profile Cases and Industry Risks
Referencing cases like Sam Bankman-Fried and Do Kwon, Gensler noted the prevalence of pump-and-dump schemes and the billions lost by investors. He described the industry as one built on sentiment rather than stability.
Academia vs. Regulation
Gensler addressed public expectations of him as a crypto advocate, citing the differences between academic study and regulatory responsibilities. He emphasized the SEC’s mission to enforce securities laws and protect market integrity.
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