Bitcoin and Cryptocurrency Remarks by SEC Chairman Gary Gensler: He Warned
SEC Chairman Gary Gensler spoke about Bitcoin in his statement and warned the cryptocurrency industry.
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has issued a stern warning to the cryptocurrency industry, saying its future depends on stronger investor protections.
Speaking in an interview on CNBC's Squawk Box today, Gensler reiterated his long-standing call for greater transparency and regulation in the crypto market.
Gensler noted that there are numerous market disruptions plaguing the industry, pointing to the collapse of major crypto companies in 2022. Among the casualties were high-profile names like crypto exchange FTX, run by now-convicted CEO Sam Bankman-Fried, as well as hedge fund Three Arrows Capital and lenders Celsius and Genesis.
Bankman-Fried was sentenced to nearly 25 years in prison on fraud charges, and Alameda Research co-CEO Caroline Ellison received a two-year sentence for her role in the FTX collapse. Former Celsius CEO Alex Mashinsky is currently awaiting a sentencing hearing early next year.
Gensler said the following on the subject:
“Just look at the leading names in this space, in the crypto space, just two years ago. Many of them are in jail now, and I’m not just talking about SBF, there have been tens of billions of dollars in losses and bankruptcies and things like that. What innovative space in America can survive without building trust in that space and protecting investors or consumers?”
Gensler said the survival of the industry depends on proper regulation, adding: “This space will not survive for long without investor protection or consumer protection.”
Gensler, who has been a fierce critic of the crypto industry’s current regulatory landscape, has consistently argued that most cryptocurrencies should be classified as securities, requiring platforms to register with the SEC. However, he acknowledged that Bitcoin is an exception and reaffirmed that it does not fall into the category of a security.
“With regard to Bitcoin, my predecessor and I said it is not a security,” Gensler said, adding, “You now have a way to actually express that view, to buy it through exchange-traded products.”
*This is not investment advice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin
MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.
Gold loses luster as institutional demand fuels bitcoin price surge, analysts say
Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.
SEC is 'engaging' Solana ETF applicants: report
SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.
Shiba Inu Developer Says SHIB Is No Longer a Memcoin