SEC Chair Gary Gensler Says ‘Crypto Is a Field Rife With Fraud, Scams, Bankruptcies and Money Laundering

The post SEC Chair Gary Gensler Says ‘Crypto Is a Field Rife With Fraud, Scams, Bankruptcies and Money Laundering appeared first on Coinpedia Fintech News

SEC Chairman Gary Gensler has once again voiced his concerns regarding regulating cryptocurrencies. At the 2023 Securities Enforcement Forum, Gensler reaffirmed his belief that many cryptocurrencies should be subject to existing securities laws. 

He argued that fraud, scams, bankruptcies, and money laundering have plagued the crypto industry. In his view, investors and issuers operating in this space should be afforded the protections provided by securities laws.

He said, “Crypto is a field rife with fraud, scams, bankruptcies and money laundering.” When Gensler was asked, “What does he want his legacy as SEC Chair to be? He replied, “Moving some good products across the line for the American people.”

Gensler also said, “There is nothing in the crypto asset securities market to suggest that investors and issuers do not deserve the protection of the securities laws. Congress could have said in 1933 or 1934 that the securities laws only apply to stocks and bonds.”

In his remarks before the event, Gensler expressed his apprehensions about the current state of the crypto industry and highlighted the number of charges that the SEC has filed in this domain. He emphasized that since December 2021, the SEC has initiated cases against 40 firms, leading to significant undertakings and over $1.5 billion in penalties. The SEC reached settlements on recordkeeping-related charges in the previous fiscal year with 23 firms.

Additionally, Gensler revealed that their investigations had unveiled the widespread use of personal devices and unofficial channels for business discussions. This raised concerns about transparency and exposed a significant failure by financial firms to maintain and preserve these off-channel communications.

Gensler recently made headlines after the SEC ended its legal case against Ripple Labs’ CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen.