US Securities and Exchange Commission (SEC) Chairman Gary Gensler has once again criticized the cryptocurrency industry for its alleged lack of compliance with securities laws and its potential to harm investors and the economy.
Speaking at a conference today, Gensler said he had never seen an area so full of people abusing power and trying to evade the law. He said millions of investors have been harmed by crypto and that troubles in the sector could spread to the overall financial system.
Gensler spoke at a conference hosted by Better Markets, a nonprofit organization that advocates for financial reform, to mark the 15th anniversary of the collapse of Lehman Brothers, which triggered the 2008 global financial crisis.
Gensler said the crypto space is largely under the jurisdiction of the SEC, but many companies in the industry do not comply with the rules.
“Without prejudging any particular token, much of this crypto space is covered by securities laws, but unfortunately much of it is also not compliant,” the SEC chairman said.
He cited the example of some regional banks that went bankrupt earlier this year due to their exposure to cryptocurrencies. He stated that such events can erode trust in finance, which is ultimately built on trust.
Gary Gensler continued his speech as follows:
“We have rules. Whether it's in the area of anti-money laundering and enforcement, whether it's securities laws or commodity exchange laws, these are called laws that Congress has passed. “We have laws that Congress passed.”
*This is not investment advice.
