U.S. Securities and Exchange Commission Chairman Gary Gensler reiterated his previous criticisms of the Crypto industry in an interview with Bloomberg on June 25, saying that the industry is highly concentrated and plagued by “serious irregularities.”
Gary Gensler downplayed the decentralization of the Crypto industry, saying a small number of platforms are “concentrating and mixing things that we would never allow elsewhere.”
Gensler cited some specific violations, such as trading against clients, front trading, and investing before contracts go public.
He pointed out that many of the “leaders” in the crypto asset space are “in jail” or “waiting to go to jail.”
Gensler added: “You may scoff at my words, but this is a serious matter, not a fuss, and this is about investor protection.”
The violations Gensler cited involved not only securities laws, but also the Bank Secrecy Act, the Commodity Exchange Act, and anti-money laundering laws.
Gensler said that many crypto asset platforms work with a large number of tokens that, under state law and the Supreme Court’s position, are securities without prior judgment.
The comments echo Gensler’s previous statements that most Crypto assets are securities.
He stressed that the tokens were offered as investment contracts and said the American public was not aware of the law’s relevant disclosure requirements.
Gensler pointed out that intermediaries such as crypto asset exchanges and brokers handle hundreds of assets and raised a question: "Are there not some entrepreneurs in the middle of these products? It kind of defies logic."
Gensler said this problem, combined with violations, has led to the SEC filing legal actions against numerous companies because the violations harmed the interests of the general public.
Additionally, Gensler declined to answer political questions, including Mark Cuban’s earlier speculation that Gensler’s Crypto asset policies could cost Biden his electoral chances.
Gensler simply responded: "I don't talk about the election, but others can."
He also declined to comment on the broader political movement surrounding crypto assets.
Gensler did not comment on the approval of the spot Ethereum ETF, which has attracted public attention, but only said that the process is "progressing smoothly."
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