Gensler Slams Crypto Ahead of His Exit

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As the days wind down before his departure from the U.S. Securities and Exchange Commission (SEC), Chair Gary Gensler criticized the cryptocurrency sector one last time, stating that it’s teeming with unscrupulous individuals.

Gensler emphasized that the general public is well-informed about Bitcoin, as it makes up approximately 80% of the total market worth.

However, there are also thousands of projects that lack fundamentals, according to the SEC boss. 

Additionally, there are countless other endeavors to consider… These approximately 10,000 to 15,000 tasks or projects… He remarked that this particular sector seems to be heavily influenced by emotions rather than solid foundations.

According to Gensler, many of these entities might not make it, likening them to ventures backed by venture capital. Moreover, he mentioned the presence of a significant number of “schemes where assets are artificially inflated and then quickly sold,” which is a common practice in some investment circles.

Defending the crypto crackdown

Regarding his imminent departure, Genser expressed gratitude for having had the honor of serving as the leader of the SEC.

He pointed out that the unique aspect of this position involves overseeing a capital market worth $120 trillion, an economic sphere that impacts every sector of our economy.

Despite the media attention given to Gensler’s legal disputes with the cryptocurrency sector, he emphasized that these matters only represented a minor portion of the Securities and Exchange Commission’s overall activities.

“It’s maybe about 5% of what we do in our law enforcement,” he stressed.  

Under Gensler’s emphasis, it’s important to note that Jay Clayton, his predecessor, took action against 80 cases related to cryptocurrencies within this sector.

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2025-01-09 11:24