According to Gary Gensler, the SEC is the main regulatory body overseeing the crypto industry in the US. He noted that many fraudulent crypto entrepreneurs build their business models by deceiving investors and disregarding the laws.
“There are too many scams and bankruptcies in the cryptocurrency industry, and many projects are just speculative investment contracts. Investors should be extremely cautious and prepared for the possibility of losing all their assets,” warned the chairman of the SEC.
Gensler acknowledged that while there are reputable players in the industry, comprehensive information about the value of crypto assets is often lacking for investors. He also criticized market participants for their lack of transparency in adhering to US laws, including anti-money laundering regulations. Gensler asserted that investors are vulnerable to fictitious trading, unregistered securities, assets with questionable value, and practices that are against their best interests.
In a separate development, a lawyer representing major cryptocurrency firms suggested that Senator Elizabeth Warren, who oversees the SEC, may be colluding with Gary Gensler against the crypto community.