The SEC once again targeted cryptocurrencies: “The sector is plagued by fraud”

The SEC once again targeted cryptocurrencies: “The sector is plagued by fraud”
September 13, 2023 – 12:04

For the Chairman of the Securities and Exchange Commission, the cryptocurrency sector is plagued by “noncompliance.”


The president of the Securities and Exchange Commission (SEC), Gary Gensler, He charged against cryptocurrencies again. In an appearance before the Senate Banking Committeethe visible head of the regulator has ensured that the digital assets is “riddled with fraud, abuse and misconduct.”

“If (the cryptocurrency industry) lived up to the challenge protection invested incorporated into its current laws, would help the investors. But right now, unfortunately, there is a significant non-compliance, and it is a field that is rife with fraud, abuse and misconduct,” Gensler said.

According to the president of the Commission, “I have never seen a field so plagued by misconduct” as the crypto sector, which paints a panorama “discouraging”.

For his part, Senator and Chairman of the Banking Committee, Sherrod Brown (D-Ohio), also positioned himself against the cryptocurrency industrywhich he defined as a whole as a dangerous group of fraudsters.

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“The problems we saw at FTX are everywhere in crypto: the lack of real disclosure, the conflicts of interest, risky bets with clients’ money that was supposed to be safe. “FTX was just the biggest and ugliest,” Brown said.

Cryptocurrencies: what is the view of the SEC and Gensler’s role

The Committee called Gensler as a witness on the SEC oversight. Multiple cases have been filed against the SEC for its crypto decisions recently, including its decisions on applications for bitcoin ETF (BTC) cash. In addition, different American media questioned the security of Gensler’s position, but this decision does not seem to be happening in the near future.

In this sense, without the approval of the Senate Banking Committee It is very unlikely that new laws can be passed on the cryptocurrency market, such as a regulation for ‘stablecoins’ or a new draft supervision of the US market. Developing more lax regulation for companies in the sector seems unlikely given Brown’s rapport with Gensler, whom he has praised for his belligerent stance against digital assets.

It should be noted that Gensler assured months ago that the SEC did not need New laws to regulate the cryptoasset market, since all its laws could be applied to any cryptocurrency except bitcoin. Similarly, the president of the regulator assured last June that the US did not need cryptocurrencies since the power of the US dollar was sufficient for the world’s first economy.

Source: Ambito

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