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Highlights
- Outgoing SEC Chair Gary Gensler says many crypto projects will fail as he iterated his anti-crypto stance.
- He believes there's still much to be done in regulating altcoins and intermediaries in the crypto market.
- US SEC to file its opening brief before Gensler steps down.
Ahead of the key U.S. SEC’s deadline to file its principal brief regarding appeals in the XRP case, Gary Gensler reiterates anti-crypto statements such as “crypto is rife with bad actors.” He says most crypto projects run on non-compliance and raise money from the public, but cryptocurrencies other than Bitcoin and Ethereum will not survive.
SEC Chair Gary Gensler Says Crypto Projects Will Fail
In an exclusive interview with David Gura on Bloomberg Markets, outgoing SEC Chair Gary Gensler points out the progress the agency has made during his tenure. Gensler will step down on January 20 and Donald Trump’s pro-crypto Paul Atkins to take over the responsibilities.
In response to enforcement actions against crypto companies, he said the SEC did well to address concerns that his predecessors, including Jay Clayton, started. In fact, Jay Clayton brought the case against Ripple on securities violations in XRP sales, as well as, actions against co-founder Chris Larsen and CEO Brad Garlinghouse.
Gensler believes the crypto is “rife with bad actors.” He distinguished crypto into two — Bitcoin and “everything else.” He slammed crypto projects for raising money from the public in hopes of better future returns. Furthermore, he asserts that the crypto field works on sentiments only and not fundamentals.
He predicts that these thousands of crypto projects “will not survive.” Moreover, he also raises concerns about pump and dump schemes. Gensler referred to Sam Bankman-Fried, CZ, and Do Kwon as “notorious” and blamed them for causing investors to lose billions of dollars.
But, SEC Lost Legal Fight in XRP Case
Gary Gensler claims the crypto industry has built up on non-compliance. He argues the crypto industry needs tougher oversight as it continues to grow despite the high-profile enforcement cases against crypto firms such as Ripple, Binance and Coinbase. He said:
“I’m proud of what we have done. Building on what Chair Clayton and others had done previously.”
However, he believes there is still work to be done about regulating altcoins and intermediaries in the crypto market.
On the contrary, federal judges and crypto industry leaders such as Ripple CEO Brad Garlinghouse criticized Gensler and the SEC for overreach. XRP has received legal clarity from the court that it’s not a security in itself. The court rulings in the case are mostly seen as a win for Ripple and XRP holders.
Gensler is to make his last mark in the XRP case as the SEC to file its opening brief regarding appeals in SEC v Ripple by January 15.
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