Gensler says monitoring cryptocurrencies is still necessary

Gary Gensler will step down from his position as head of the U.S. Securities and Exchange Commission (SEC). January 20 with the inauguration of President-elect Donald Trump.

But this did not stop Gensler from expressing his concerns about the need to do more to regulate the cryptocurrency market, especially altcoins and brokers.

in Interview with Bloomberg TV On Wednesday (Jan. 8), he emphasized that ordinary investors still lack adequate disclosures from digital asset companies, and said the cryptocurrency landscape is “riddled with bad actors,” highlighting the need for regulatory oversight to protect investors from fraud and misinformation. .

Gensler’s tenure has been marked by aggressive enforcement actions against several cryptocurrency entities, including high-profile cases involving… Coinbase International and Ripple Labs. Since taking office in 2021, he has overseen about 100 enforcement actions related to cryptocurrencies.

While Jay Clayton, Gensler’s SEC Chairman predecessor, focused the 80 enforcement actions between 2017 and 2020 on token issuers, Gensler’s approach often targeted market intermediaries for failing to comply with securities laws regarding registration and disclosure.

Meanwhile, Trump was nominated Paul Atkinsa former SEC commissioner known for his pro-cryptocurrency stance, was appointed to succeed Gensler. This shift is expected to lead to a more favorable regulatory environment for digital assets, which may reduce enforcement actions against the industry. It’s a sharp contrast to Gensler’s stricter regulatory approach.

In his remarks, Gensler expressed concern that many existing cryptocurrency projects are unlikely to survive, comparing them to venture capital investments that are prone to high failure rates.

Despite criticism from the cryptocurrency community that classifying most crypto assets as securities has stifled innovation, Gensler defended his record in the interview. He emphasized that the SEC’s actions were necessary to maintain market integrity and protect investors.

“I’ve never seen a field that cares so much about sentiment and not so much about fundamentals,” he noted, underscoring his belief that regulatory clarity is essential for the future of the cryptocurrency industry.

To learn more about what’s to come, read on PYMNTS »The top three crypto policies in the US to watch this year“.