The director stated that majority of the 10,000 or 15,000 tokens will fail.
This is not the first time Gensler has warned about the failure of cryptocurrency.
On Wednesday, SEC Chairman Gary Gensler participated in a Twitter spaces conversation held by the United States Army. Where he offered some tips on investing in cryptocurrencies. Gensler warned that most cryptocurrencies “are not complying with securities laws, but they should be.” Describing crypto as a “highly speculative, volatile asset class.” He said that cryptocurrency is “the Wild West” and he questioned the practical use of most tokens.
This is not the first time Gensler has warned about the potential failure of cryptocurrency coins. His prediction that many crypto tokens will fail was echoed by others in May of last year, after the terra/Luna ecosystem had already collapsed.
Stringent Stand Against Crypto
The director of the SEC issued a warning stating that the majority of the 10,000 or 15,000 tokens will fail. Gensler warned potential cryptocurrency investors by emphasizing that the technology is “non-compliant generally.”
The SEC Chairman added:
“That’s because venture capital fails, new firms fail, and there’s not much opportunity for micro currencies, meaning, you know, we have the U.S. dollar and Europe has the euro and the like.”
The head of the SEC has come under fire from politicians and crypto sector players for focusing too much on enforcement. In November of last year, Gensler reaffirmed the continued emphasis on cryptocurrency by the securities regulator’s enforcement section.
For “the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program,” the SEC filed charges against two notable cryptocurrency organizations this week: Gemini and Genesis.
