Earlier this month, CoinDesk’s Most Influential series included U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler as one of its most influential figures in the crypto industry. In my reporting for the series, I spoke to Gensler about the SEC’s role in the digital asset world.
The SEC chief and his agency are the most prominent regulatory body for the U.S. crypto industry, and with good reason. While many crypto companies are looking for state money transmitter licenses and to comply with anti-money laundering rules, much of the industry’s trading falls within the SEC’s remit.
According to Gensler, many crypto entrepreneurs have “built a business model around noncompliance with the law” and he has “deep respect for the investing public”. He believes crypto investors are not receiving appropriate disclosures from the various projects they may be buying tokens for, leading to “far too many frauds and bankruptcies”.
The SEC is reviewing a number of rules that might affect the crypto industry, though Gensler did not prejudge them when asked. He highlighted entrepreneurs in the sector a number of times and questioned the real value proposition of most of the tokens he sees as crypto securities.
Gensler has reiterated the need for better regulation in the industry a number of times, warning investors to be “wary, careful, and ready to lose 100% of their assets”.
Next week, CoinDesk’s Regulation Team will share what they are expecting or watching out for in the crypto industry in 2024. If you have any thoughts or questions, feel free to email me at nik@coindesk.com or find me on Twitter @nikhileshde, or join the group conversation on Telegram.
