Gary Gensler appeared in a speech saying crypto is full of fraudsters.
In the end, he finally looks at the safety of crypto investors, he said.
On Thursday, Gary Gensler, the Chairperson of the U.S. Securities and Exchange Commission (U.S. SEC) has given a speech regarding certain critiques that SEC is been doing in order to protect investors. However, he condemns that the crypto industry is full of ‘hucksters, fraudsters, and scam artists’ which left the public ‘in line at the bankruptcy court.’
As per the SEC view, most of the crypto tokens are considered ‘securities’, says Gensler at Piper Sandler Global Exchange and FinTech Conference that happened in NYC. Yet, there are some tokens that have to be registered as per the legal regulatory act, he insisted.
While at the speech, Gensler stated:
The crypto securities markets should not be allowed to undermine the well-earned trust the public has in the capital markets.
The crypto markets should not be allowed to harm investors.
His concerns are valid as he wants to protect crypto investors without facing any scams and losses. He explained the fact of actions against Coinbase and Binance as well. However, he took a detailed venture of bringing forth the laws and factors.
The purpose of enacting the laws is predominantly meant for regulating the investors with the crypto securities, Gensler said. Meanwhile, some of the crypto intermediaries should be underlined with the rules and regulations. He mentioned a comment from SEC Enforcement Director Gurbir Grewal saying;
“You simply can’t ignore the rules because you don’t like them or because you’d prefer different ones: the consequences for the investing public are far too great.”
Henceforth, Gensler demands a proper disclosure of the crypto tokens following the regulatory laws. Since the ultimate goal of markets is trust, crypto investors shouldn’t be harmed and are entrusted with capital markets.