In today’s hearing, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), issued a stark warning about the cryptocurrency industry. He stated that the sector is rife with “fraud, abuse, and misconduct,” raising eyebrows and fueling ongoing debates about the need for regulation.
JUST IN: 🇺🇸 SEC Chair Gary Gensler says crypto is full of fraud, abuse and misconduct. pic.twitter.com/YzZNbbjrF0
— Watcher.Guru (@WatcherGuru) September 12, 2023
Senator Tillis Inquires on Equity Market Structure Reforms: Do the Regulations Consider the Interconnectedness of Existing Rules? (A question echoing industry skeptics who favor preserving the current system)
Gensler: “Each rule has robust economic analysis.”
Gensler is no stranger to the world of digital assets. He has consistently maintained that many cryptocurrency platforms are in direct violation of existing securities laws. His rationale hinges on the belief that cryptocurrencies function similarly to securities. Therefore, he argues, the platforms where these digital assets are traded should be subject to the same regulatory oversight as traditional stock exchanges.
The SEC Chair’s stringent views have not gone unnoticed by the crypto community. Critics argue that Gensler’s approach is overly restrictive and stifles innovation. Some even go as far as labeling him a “deep state” agent with a hidden agenda to ban or severely limit the use of cryptocurrencies.
Despite his hardline stance, Gensler is not entirely dismissive of the crypto industry. He acknowledges the transformative potential of financial technology, stating that “financial technology can be a powerful force for good.” However, he emphasizes that this potential can only be realized if the industry aligns with the SEC’s core values, which aim to protect investors, issuers, and the general public.
Gary Gensler’s position on cryptocurrency remains a subject of intense debate. While he raises valid concerns about the risks associated with an unregulated market, his critics argue that excessive regulation could hamper the industry’s growth and innovation.
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