Securities and Exchange Commission Chairman Gary Gensler reiterated his long-standing criticism of the cryptocurrency industry, calling it “full of bad actors” during an interview with Bloomberg TV on Wednesday.
Reflecting on his tenure, Gensler He said He was proud of the SEC's enforcement actions in the cryptocurrency space, noting their consistency over the years.
Gensler highlighted the groundwork laid by his predecessor, Jay Clayton, who led 80 cryptocurrency-related enforcement actions from 2017 to 2020. During Gensler's four-year leadership, second It has initiated nearly 100 actions, and has maintained a consistent approach to tackling fraud and misconduct in this rapidly evolving sector.
Cryptocurrencies represent less than 1% of US financial markets, yet they are rife with “scams,” Gensler said.
“I've never seen a field so wrapped up in emotion and not so much fundamentals,” Gensler said. "Of those 10,000 to 15,000 projects, a lot of them won't survive. They're like venture capital investments. They won't survive."
Gensler's comments come as he prepares to step down on January 20, the inauguration day of President-elect Donald Trump.
Gensler and cryptocurrencies
Biden appointee Gensler has publicly expressed skepticism toward cryptocurrency regulation. He's out Strongly against FIT21 The draft law after its approval in the House of Representatives.
The relationship between the cryptocurrency industry and Gensler has been controversial. The industry mostly views Gensler with suspicion and frustration. Many people think he is strict Enforcement approach The classification of most crypto assets as securities has stifled innovation and created legal uncertainty.
Gensler has repeatedly emphasized that most cryptocurrencies qualify as securities, and has urged companies to register with the Securities and Exchange Commission.
Critics within the industry argue that compliance is impractical due to regulatory frameworks designed for traditional financial entities.
Looking back on his tenure, Gensler acknowledged the challenges but emphasized the SEC's role in building on previous efforts.
“I'm proud of what we've accomplished, but there's still work to do,” he said.
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