SEC Chairman Gary Gensler on Crypto Issues

Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), recently underscored several concerns he has about the cryptocurrency market. According to a report by the BBC, he described the crypto industry as being rife with fraud and deceit.

The report further noted Gensler’s comments on the significant financial losses faced by investors worldwide due to the non-compliance of cryptocurrency companies with SEC regulations. He emphasized that while cryptocurrencies represent a small fraction of the U.S. and global capital markets, they have the potential to undermine investor confidence.

Gensler also criticized cryptocurrency firms for failing to adhere to long-standing rules designed to protect private investors from bad actors seeking to raise funds from the public. He pointed out that these companies often claim exemption from established laws simply because they register their crypto assets on new ledgers.

In March, Gensler elaborated on the importance of mandatory disclosure for companies seeking public funding. He highlighted several benefits of such disclosures, including enhanced market efficiency, better pricing, and more accurate reflection of a company’s prospects. Additionally, he noted that these disclosures provide valuable signals that help direct capital to its most productive uses, thereby fostering capital formation. Lastly, Gensler stated that transparency can build trust in the market and among companies raising funds from the public.

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