Gensler says the SEC has more work to do on regulating cryptocurrencies

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Gensler says the SEC has more work to do on regulating cryptocurrencies

(Bloomberg) — Gary Gensler, the outgoing chairman of the Securities and Exchange Commission, believes there is still a lot to be done to regulate altcoins and brokers in the digital asset market.

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Investors today still do not receive adequate disclosures or information from digital asset companies, Gensler said Wednesday during an interview with Bloomberg TV.

The former Goldman Sachs executive’s tenure as one of Wall Street’s top cops was marked by aggressive enforcement efforts against numerous cryptocurrency players, from outright scammers to companies like Coinbase Global Inc. and private trading company DRW Holdings.

Gensler announced in November his plans to step down as head of the agency on January 20, when President-elect Donald Trump is sworn in. Trump nominated Paul Atkins, former commissioner of the Securities and Exchange Commission, to lead the agency. It is expected to significantly ease enforcement measures against digital asset companies and take a positive view of the digital asset industry.

Gensler noted that his predecessor, Jay Clayton, who led the agency during the first Trump administration, filed about 80 enforcement cases related to cryptocurrencies, while the agency filed about 100 during his tenure. But while the SEC under Clayton cracked down on companies that were issuing tokens that the agency considered securities, Gensler’s focus was often on market brokers who flouted compliance with securities laws for registration and disclosure.

The SEC has had many court victories, as well as losses, because of its position that companies are avoiding registration and disclosure requirements under Gensler.

“I’ve never seen a field so wrapped up in sentiment and not fundamentals,” Gensler said, adding that he believes many of these cryptocurrency projects will not survive.