Gary Gensler Says Crypto Industry Teeming With Hucksters, Fraudsters, and Ponzi Schemes: Report
The Chair of the U.S. Securities and Exchange Commission (SEC) is doubling down on his harsh stance on crypto as he reportedly says that the industry is teeming with criminals and illicit activities.
Speaking at the Piper Sandler Global Exchange and FinTech Conference in New York City, Gary Gensler says crypto reminds him of the 1920s, which he says was a time absent of federal securities laws, per CNBC.
“Hucksters. Fraudsters. Scam artists. Ponzi schemes. The public left in line at the bankruptcy court.”
The long-time crypto critic reiterates the SEC’s stand that most digital tokens are securities and are within the purview of the agency.
“Given that most crypto tokens are subject to the securities laws, it follows that most crypto intermediaries have to comply with securities laws as well.”
Gensler also says that crypto asset providers should register with the SEC. He highlights that the role of the SEC is to prevent investors from being caught in the middle of imploding crypto projects.
“These alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosures, segregation of customer assets, safeguards against conflicts of interest, oversight by a self-regulatory organization, and routine inspection by the SEC.”
The statement comes following the SEC’s lawsuits against top crypto exchanges Binance and Coinbase.
The regulator filed multiple charges against Binance and its CEO Changpeng Zhao for allegedly violating federal securities and investor protection laws. The SEC also accuses Coinbase of operating as an unregistered securities exchange, broker and clearing agency.
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