SEC Chairman Gary Gensler: Cryptocurrencies won’t end well unless they’re regulated

U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler said cryptocurrencies will not end well if they remain unregulated. That statement comes at a time when the SEC has been repeatedly criticized for placing regulatory burdens on the crypto industry.

SEC Chairman, Gary Gensler

Gensler spoke about crypto regulation Monday during an interview with former federal attorney Preet Bharara at the Code Conference in Beverly Hills, California.

He explained that the US crypto sector has many exchanges and credit centers with not just dozens, but hundreds and sometimes thousands of tokens. Additionally, he stated that if the crypto market continues to operate out of the reach of regulators, people will suffer badly.

“This market will not end well if it evades regulation. Incidents will happen and many people will suffer, “warned the SEC chairman.

In August, Gensler said the cryptocurrency sector will not achieve any potential unless it complies with SEC law. Last week, former US Treasury Secretary Larry Summers also said that regulated cryptocurrencies would be better able to deal with the current situation.

During a Senate Banking Committee hearing last week, the SEC chairman said several crypto platforms, including Coinbase, which is listed on the Nasdaq, have multiple tokens, one of which could be a share. And the SEC needs more manpower and funding to better regulate the crypto sector.

“We currently do not have adequate investor protection in the financial sector that issues, trades or lends cryptocurrencies,” he said. At the same time, he also claimed that the crypto industry is similar to the Wild West as it was before the securities laws were passed.

However, some criticized the SEC for taking an enforcement-oriented approach to crypto regulation, including SEC Commissioner Hester Peirce. Last week Senator Pat Toomey wrote a letter to Gensler asking for clarification on this emerging industry regulation.

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