SEC chief: Crypto market is in trouble because of non-compliance with laws



06/12/2023 5:16 AM


The US Securities and Exchange Commission's chairman claimed that there are numerous issues with the cryptocurrency market because of noncompliance on the part of its users.



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Gary Gensler, chairman of the SEC, stated that there is a wide range of non-compliance in the bitcoin industry at the Piper Sandler Global Exchange and FinTech conference. 

Since there is such a wide range of non-compliance, Gensler added, "it's not surprising that we see so many issues with [cryptocurrency] markets." The general public has, in his opinion, "seen this story before." The SEC chairman contrasted the current status of the market to what it was like in the 1920s, before the US created federal securities rules: "Speculators, con artists, etc. Scammers. Pyramid financial schemes. There were long lines of people in bankruptcy courts," Gensler continued.

Gensler emphasized in his speech's conclusion that cryptocurrency markets shouldn't damage investors and erode public confidence in capital markets. According to him, markets where "issuers and intermediaries do not comply with fundamental laws" are where fraud and bankrupt companies emerge. Investors should receive adequate disclosure, Gensler said, and be guaranteed that their assets are kept separate from those of other funds.

source: forbes.com


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