SEC Chair Gensler: Crypto Industry Plagued by Misconduct and Legal Challenges
Gary Gensler, the Chair of the Securities and Exchange Commission (SEC), has once again expressed concerns about the prevalence of compliance issues and misconduct in the crypto space.
During a recent conference hosted by Better Markets, Gensler acknowledged that while not all tokens can be prejudged, a significant portion of the crypto industry falls under securities laws but remains non-compliant
"This crypto space that much of it, without prejudging any one token, much of it is under the securities laws, but unfortunately, much of it is also non-compliant," he said.
He claimed that crypto has had a destructive impact on millions of investors who have suffered losses, emphasizing that these problems could potentially extend beyond the crypto industry and affect the broader financial system.
"Millions of investors have been hurt in this field," he said.
"It's an area that can hurt investors, but it can also hurt the broader economy because it can hurt investor confidence, and finance is ultimately built on trust."
The SEC Chair stressed the importance of investor confidence, saying that finance relies on trust and any erosion of that trust can have far-reaching consequences.
Despite acknowledging that the overall crypto economy is relatively small compared to the multi-trillion-dollar capital market, Gensler emphasized the potential damage it can cause to investor confidence.
He pointed to direct connections between the failures of regional banks earlier this year and their involvement in the crypto field.
Gensler voiced concern regarding the high levels of misconduct within the crypto industry, stating that he had never witnessed such a pervasive disregard for the law.
"I've never seen a field so rife with misconduct, and
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