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XRP Case News: Why Gary Gensler Believes Most Crypto Projects Are Set to Fail?

XRP Case News: outgoing SEC Chair Gary Gensler warns many crypto projects are set to fail as the crypto industry is rife with bad actors.
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XRP Case News: Why Gary Gensler Believes Most Crypto Projects Are Set to Fail?

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.

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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.

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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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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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