SEC Chairman Warns Most Crypto Will Fail — Says ‘Don’t Get Caught up in FOMO, Fear of Missing Out’ – Regulation Bitcoin News

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The chair­man of the U.S. Secu­ri­ties and Exchange Com­mis­sion (SEC), Gary Gensler, has warned that most cryp­to tokens will fail. He has urged investors not to “get caught up in the FOMO, the fear of miss­ing out,” empha­siz­ing that cryp­to is a high­ly spec­u­la­tive, non-com­pli­ant asset class. 

Gary Gensler Expects Most Crypto to Fail

SEC Chair­man Gary Gensler gave some advice on cryp­tocur­ren­cy invest­ing Wednes­day dur­ing a Twit­ter spaces dis­cus­sion host­ed by the U.S. Army.

Call­ing cryp­to a “high­ly spec­u­la­tive, volatile asset class,” Gensler stressed that most cryp­tocur­ren­cies “are not com­ply­ing with secu­ri­ties laws, but they should be.” Not­ing that cryp­to is “the Wild West,” he also ques­tioned the use cas­es of most tokens.

The SEC chief warned:

Most of these 10,000 or 15,000 tokens will fail.

“That’s because ven­ture cap­i­tal fails, new star­tups fail, but also because his­to­ry tells us that there’s not much room for micro cur­ren­cies, mean­ing, you know, we have the U.S. dol­lar and Europe has the euro and the like,” he explained.

Empha­siz­ing that cryp­to is “non-com­pli­ant gen­er­al­ly,” Gensler pro­ceed­ed to advise investors:

Don’t get caught up in the FOMO, the fear of miss­ing out. Please don’t get caught up in that.

This was not the first time Gensler has cau­tioned about cryp­to tokens fail­ing. In May last year, fol­low­ing the col­lapse of the terra/luna ecosys­tem, he sim­i­lar­ly warned that a lot of cryp­to tokens will fail.

The SEC chief has been crit­i­cized by law­mak­ers and indus­try par­tic­i­pants for tak­ing an enforce­ment-cen­tric approach to reg­u­lat­ing the cryp­to indus­try. In Novem­ber last year, Gensler affirmed that the secu­ri­ties regulator’s enforce­ment divi­sion will remain focused on cryp­to.

This week, the SEC charged two promi­nent cryp­to firms — Gem­i­ni and Gen­e­sis — “for the unreg­is­tered offer and sale of secu­ri­ties to retail investors through the Gem­i­ni Earn cryp­to asset lend­ing program.”

What do you think about SEC Chair­man Gary Gensler’s cryp­to warn­ing and advice? Let us know in the com­ments sec­tion below.

Kevin Helms 

A stu­dent of Aus­tri­an Eco­nom­ics, Kevin found Bit­coin in 2011 and has been an evan­ge­list ever since. His inter­ests lie in Bit­coin secu­ri­ty, open-source sys­tems, net­work effects and the inter­sec­tion between eco­nom­ics and cryptography.




Image Cred­its: Shut­ter­stock, Pix­abay, Wiki Commons

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