Gary Gensler: Crypto Industry Must Comply With Regulators

JAKARTA - The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, criticized the crypto industry for violating US regulations. At the 2023 Securities Enforcement Forum in Washington, Gensler claimed that crypto companies should not ignore conventional financial rules.

Gensler said that the decentralized crypto industry poses risks to investors and crypto asset publishers. He reminded that the definition of securities according to the US congress includes the term "investment contract."

Therefore, most crypto assets must comply with securities laws. Gensler also highlights issues in the crypto industry, such as fraud, bankruptcy, and money laundering, which require strict scrutiny.

Different Views With Previous Former SEC

On the other hand, the former SEC chairman, Jay Clayton, is more optimistic about the crypto industry. In an interview with CNBC's "Last Call," he believes that the Exchange-Trad Fund (ETF) Bitcoin approval will occur.

Clayton said that the regulatory issues that hindered the Bitcoin ETF have been resolved. He gave an example that the laundry trade and low-quality data have been addressed.

Furthermore, Clayton referred to a 2019 Bitwise Asset Management report, which shows the existence of fake Bitcoin trading volume on crypto exchanges that violate the rules.