US Securities and Exchange Commission (SEC) Chairman Gary Gensler is reportedly highlighting what he thinks is wrong with the cryptocurrency industry.
Gensler says the crypto industry is “full of fraud, peddlers and scammers,” the BBC reports.
The report further quotes Gensler as saying that investors around the world have “lost too much money” as a result of crypto companies refusing to follow the laws the SEC is tasked with enforcing.
“Crypto is just a small piece of the U.S. and global capital markets, but it could undermine the confidence that ordinary investors have in the capital markets.”
Gensler also accuses crypto companies of not following long-standing rules meant to protect private investors from bad actors looking to raise money from the public.
“This is a field [crypto industry] that has come along, and just because they register their crypto assets on a new accounting ledger, they can [wrongly] saying ‘we don’t think we want to comply with the proven laws’.”
In March, the SEC chairman explained why he believes mandatory disclosures by companies seeking to raise funds from the public are important.
“The benefits of investors having access to regulatory disclosures are numerous. First, disclosure promotes more efficient markets. It promotes better price discovery. Providing more information results in prices that more accurately reflect a company’s prospects.
Second, such prices provide valuable signals, allowing capital to flow to the most productive destination and thus promoting capital formation.
Third, disclosure promotes trust in the markets and the companies that raise money from the public.”
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