SEC Chairman Gary Gensler: Crypto Industry Is Wild!

JAKARTA SEC chief Gary Gensler is still skeptical about speculative assets, including digital assets, in the latest iteration of crypto criticism. During a Twitter session held by the Army on Wednesday, Gensler said that most cryptocurrencies had no compliance with appropriate usage regulations and cases.

Gensler calls the crypto industry the "World West" and once again warns about being caught in a "PHOMO" that often revolves around this sector. He also noted that investors and companies should proceed with caution, as most currencies currently do not comply with the law.

In the session, which was presented as financial advice for US service members, Gensler also stressed the need for more regulatory oversight in the crypto industry. He stated that while many new digital assets have the potential to be used for good, they also have the potential to be used for illegal activities.

Overall, Gensler's message is clear: investors and companies should be careful and aware of regulatory risks in the crypto industry, and recognize that most cryptocurrencies do not comply with regulations.

"Most of this, once again, does not comply with securities laws, but it should," Gensler said.

Gensler doubled many previous comments on Wednesday, January 11, saying that the value proposition for digital assets wasn't there.

"Most of these 10 or 15,000 tokens will fail," Gensler said. "That's because venture capital failed, new startups failed - but also because history tells us that there's not much room for microcurrencies, meaning, you know, we have US dollars and Europe has euros and the like."

Launching Blockworks, the sentiment highlights one major field of concern for Gensler and the SEC more broadly: how crypto tokens are classified. If cryptocurrencies are securities, they will be below the SEC's scope.

The SEC chief has also placed crypto intermediaries on notice, suggesting they need to register with the agency during his testimony before the US Senate Committee on Banking, Housing and Urban Affairs in September.

"Given that most crypto tokens are securities, many crypto intermediaries - do they call themselves centralized or decentralized - transact in securities and must register with the SEC in some capacity," Gensler said during a September trial.