SEC Chair Gary Gensler has never been a fan of cryptocurrencies. Time and again, he has been vocal about the same. Speaking in a Twitter space session hosted by the US Army late Wednesday, Gensler reaffirmed his skepticism.
Gensler said that the crypto industry is the “wild west.” The SEC Chair asked traders and companies to exercise caution because most cryptos are currently “non-compliant” and aren’t adhering to the law. He said,
“Most of these, again, are not complying with the securities laws, but they should be.”
Further elaborating on why most tokens will fail, Gensler said,
“Most of these 10 or 15,000 tokens will fail. That’s because venture capital fails, new startups fail, but also because history tells us that there’s not much room for micro currencies, meaning, you know, we have the US dollar and Europe has the euro and the like.”
Gensler Warns Against FOMO
Gensler additionally cautioned listeners to steer away from the market. He asserted that it’s quite easy to fall prey to the “fear of missing out.” He said,
“Please don’t get caught up in that [FOMO]. This is highly speculative.”
With asset prices rallying, “Altcoin FOMO” is currently taking off in the market. Like highlighted in a recent article, crypto media is starting to get flooded with tweets and mentions including terms like “Altcoins” and “Altcoinseason.”
The same, however, serves as a precautionary warning. Conventionally, whenever asset prices pump, the crowd tries to FOMO in. As a result, a top usually gets formed and the derailing takes place. After that, only when the crowd starts doubting, the conditions reverse.
The crypto market has massively shed value over the past year. From boasting of an aggregate market cap of over $3 trillion, the number is currently down to $890 billion. Nevertheless, with prices of most top assets taking off, a moderate 4.1% recovery has been registered over the past day.