Gary Gensler Will Target Scammers, SEC Tightens Crypto Supervision

Chairman of the US Securities and Exchange Commission, Gary Gensler. (Photo; Doc. MarketRealist)

JAKARTA Crypto assets are getting more and more attention from regulators, especially from the United States Securities and Exchange Commission (SEC). SEC chairman Gary Gensler highlighted the many cases of fraud or scamming that occurred in the crypto sector. Therefore, he emphasized the need for tighter supervision.

This was conveyed by Gensler while speaking at DC Fintech Week, a conference focused on financial technology. Gensler's firm stance follows the recently handed down sentence to former FTX CEO Sam Bankman-Fried for investor fraud.

Gensler said that the SEC, despite limited resources, prioritizes cases based on its impact. That way, US regulators appear to be targeting cases that have the potential to have the most significant impact on the market.

Under Gensler's leadership, the SEC has taken proactive steps in dealing with malpractice in the growing crypto market. The Commission has doubled its Crypto Asset division and Cyber Unit. The financial watchdog has also cracked down on about 760 cases in the last fiscal year. This increase reflects the SEC's commitment to curbing many fraudulent schemes that flood crypto space.

Gensler is also very vocal about the crypto industry's obligation to follow existing financial regulations. He pointed out the need for crypto companies to register with the SEC, thus subject to the same regulatory framework as traditional financial institutions obey.

The SEC chairman also highlighted the importance of knowing the utility or usefulness and purpose of crypto projects. He stressed that investors must understand the utility of crypto assets from thousands of digital assets in circulation. That way, investors can make investment decisions based on the intended function and potential value of crypto projects.

Furthermore, the controversial figure hopes to increase transparency and fundamental analysis in the crypto market. This will encourage US financial watchdogs to protect investors from baseless market hype.