The chairman of the US Securities and Exchange Commission (SEC) is doubling down on his tough stance on crypto, as he reportedly says the industry is teeming with criminals and illicit activity.
Speak at the Piper Sandler Global Exchange and FinTech Conference in New York City, Gary Gensler says crypto reminds him of the 1920s, saying there were no federal securities laws, according to CNBC.
“Hucksters. Scammers. Swindlers. Ponzi schemes. The public lined up in bankruptcy court.”
The longtime crypto critic reiterates the SEC’s position that most digital tokens are securities and fall within the agency’s purview.
“Since most crypto tokens are subject to securities laws, it follows that most crypto intermediaries must also comply with securities laws.”
Gensler also says crypto asset providers must register with the SEC. He emphasizes that the role of the SEC is to prevent investors from getting caught up in imploding crypto projects.
“These alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosures, segregation of client assets, safeguards against conflicts of interest, oversight by a self-regulatory organization, and routine SEC inspection.”
The statement follows the SEC’s lawsuits against major crypto exchanges Binance and Coinbase.
The supervisor submitted an application multiple costs against Binance and its CEO Changpeng Zhao for allegedly violating federal securities and investor protection laws. The SEC is also accusing Coinbase of operating as an unregistered stock exchange, broker, and clearing house.
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