SEC Chairman: Cryptocurrencies Are Just “Fraud And Fraud”

The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has no sympathy for cryptocurrencies.

“This asset class is rife with fraud, fraud and abuse in certain applications,” Gensler mentioned in an interview with the Aspen Security Forum.

He additionally believes that digital foreign money is a kind of safety that’s underneath the supervision of. ought to stand SEK. The uncertainty surrounding the regulation of cryptocurrencies in recent times has led to quite a few lawsuits and investigations within the US, and which company is presently underneath the management of digital foreign money is an unanswered query.

According to Gensler, cryptocurrency buyers don’t have sufficient data to evaluate and perceive the dangers of investing in digital property.

“If you want to invest in a digital store of value that is scarce and highly speculative, that’s fine,” says Gensler. “However, we presently don’t have adequate safety for buyers. To be trustworthy, the crypto market is just like the American Wild West. ”

With a market capitalization of about 1.6 thousand VND Billion USDThe cryptocurrency market remains to be comparatively small in comparison with the dimensions of the US capital market. But that doesn’t imply that the cryptocurrency market is unregulated, Gensler emphasised.

“I fear that if we don’t solve the problem, a lot of people will be injured,” he mentioned.

There are a quantity within the digital foreign money world that the chairman SEK Of specific concern: stablecoins (digital currencies pegged to an actual asset just like the USD).

Cryptocurrency buyers usually use stablecoins to purchase and promote different digital currencies. According to Gensler, three quarters of all digital foreign money transactions between stablecoins and different digital currencies final month occurred between paper cash and digital foreign money.

This may very well be an indication that buyers are utilizing stablecoins to keep away from utilizing the normal banking system to keep away from cash laundering, tax evasion or different regulatory measures.

Recently, the digital foreign money market has suffered from many regulatory blows from many nations world wide, particularly China. Recently, the world’s second largest economic system banned cryptocurrency mining and in addition handed a coverage banning banks and monetary establishments from offering digital foreign money companies.

Vu Hao (According to CNN)