Crypto is Rife With Fraud, Scams, and Money Laundering: SEC Chair Gary Gensler Breaks His Silence!

In the latest update, SEC Chairman Gary Gensler has once again shared his worries about regulating cryptocurrencies. Speaking at the 2023 Securities Enforcement Forum, Gensler emphasized his belief that many cryptocurrencies should follow existing securities laws.

Gensler’s argument revolves around the common presence of fraud, scams, bankruptcies, and money laundering in the crypto world. He strongly believes that both investors and those involved in cryptocurrency creation should benefit from the protective measures already established by securities laws.

Gensler Bashes the Industry

Gensler declared that “Crypto is a field rife with fraud, scams, bankruptcies and money laundering.”

When asked about his legacy as SEC Chair, he responded with a clear vision.

“Moving some good products across the line for the American people.”

Moreover, Gensler stressed that there’s no sign in the cryptocurrency asset securities market that suggests investors and issuers shouldn’t be covered by securities laws. He pointed out, “Congress could have stated back in 1933 or 1934 that securities laws only apply to stocks and bonds.”

Also Read: Raoul Pal Says the SEC Chair Gary Gensler Will Not Win Big Cases: ‘They’re Doing It for Politics’

Looking at the SEC’s Actions

Before the forum, Gensler expressed his concerns about the current state of the cryptocurrency industry, pointing out the rise in cases pursued by the SEC in this area. He highlighted that, since December 2021, the SEC has taken legal actions against 40 companies, resulting in significant settlements and fines exceeding $1.5 billion. In the previous fiscal year, the SEC reached settlements on charges related to record-keeping with 23 firms.

Additionally, Gensler revealed the outcomes of their investigations, showing the widespread use of personal devices and unofficial communication channels for business discussions within financial firms. This discovery raised concerns about transparency and unveiled a significant oversight in the preservation of off-channel communications.

Notably, Gensler recently made headlines when the SEC concluded its legal case against Ripple Labs’ CEO, Brad Garlinghouse, and Executive Chairman, Chris Larsen.