SEC Chairman Gary Gensler, in his prepared speech at the 2023 Securities Enforcement Forum, stated that cryptocurrencies are fraught with issues such as fraud, money laundering, and bankruptcy, and need to be sanctioned.
Gensler has long argued that cryptocurrencies should be subject to current securities laws. According to Gensler, who in 2023 caused sanctions to be imposed on a series of cryptocurrency exchanges, cryptocurrencies should adhere to traditional financial rules.
“There is nothing about the crypto asset securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws.”Gary Gensler.
Gary Gensler. Gensler pointed out that Congress expanded the securities laws in 1933 and 1934, which were originally only applicable to stocks and bonds. This expansion encompasses many different elements, including ‘investment contracts’.
Current Problems of the Crypto Industry
Gary Gensler expressed that the problems encountered in the crypto sector are not surprising. “This is an area filled with fraud, bankruptcy, and money laundering,” he said. He also pointed out that while some crypto companies claim to operate beyond old regulations, they are also seeking legal protection.
“While many entities in this space claim they operate beyond the reach of regulations issued before Satoshi Nakamoto’s famous white paper, they also are quick to seek the protections of the law, in bankruptcy court and litigating their private disputes.”
Therefore, according to him, the troubles of the sector are not surprising at all…
Source: The Block