In a conversation with Bloomberg, US Securities and Exchange Commission (SEC) Chair, Gary Gensler warned investors that crypto is “rife with fraud, rife with hucksters.” Subsequently, the statement arrived after a recent court ruled against the security status of XRP, contrary to the SEC’s perspective.
Gensler stated that “a lot of investors should be aware that it’s not only a highly speculative asset class, it’s also one that they currently should not assume they are getting the protections of the securities law.” Thereafter, he noted this despite the agency’s approach that securities law applies to most tokens.
Also Read: SEC Chair Gary Gensler Says Crypto is Full of “Fruad, Scams, and Abuse”
SEC Chair Gensler Comes After Crypto Yet Again
On the heels of a landmark ruling in the two-year-long lawsuit between the SEC and Ripple, the agency’s chair is again speaking out. Moreover, once again, he has come for the nature of the industry. Specifically, setting forth a warning to investors in a recent interview with Bloomberg.
There, SEC Chair Gary Gensler said that the crypto market is “rife with fraud, rife with hucksters.” Subsequently, he states that investors who enter the space should be forewarned about their lack of protection. Despite then stating that the securities laws should still apply to protect them.
Then, Gensler set his sights on exchanges and their operations. Hinting that they violate laws that other exchanges abide by. He stated, “You as investors are not getting the full, fair, and truthful disclosure, and the platforms and intermediaries are doing things that we would never in a day allow or think the New York Stock Exchange or NASDAQ would do.”
Also Read: US Congressman Files Legislation to Fire SEC Chair Gary Gensler
Additionally, Gensler said exchanges “often are commingling and trading against you and have market makers that are on the other side of your trades.” Finally, stating that the industry has “good faith actors,” but “there are far too many that aren’t.”
The SEC has long been criticized for its enforcement-first approach to unclear regulation. Something that was touched upon in the most recent XRP ruling. Ultimately leading the agency to enact lawsuits against both Coinbase and Binance in recent motions.