The head of the SEC spoke about the dangers of cryptocurrencies for the economy

Garry Gensler-min
Garry Gensler-min

Chairman SEC Gary Gensler has reiterated his tough stance on digital assets, citing their possible harm to the global financial system.

“I have never seen a place so rife with misconduct and people trying to break the law,” Gensler described the crypto industry.

The official spoke about this at a conference in honor of the 15th anniversary of the collapse of the investment bank Lehman Brothers, organized by the non-profit legal organization Better Markets.

The head of the SEC noted that “millions of people” were affected by digital assets, and this situation undermines the confidence of many investors even in traditional markets.

Gensler also criticized celebrity endorsements for the industry and regulatory efforts in some US states. The official added that separate rules for cryptocurrencies in the country are not needed as they already exist.

“They are called laws passed by Congress, whether in the area of ​​anti-money laundering and sanctions or in the area of ​​securities and commodity exchange regulations,” the chairman said.

However, Gensler ignored the question of “sympathetic judges,” likely in the context of the department’s proceedings with Ripple and Grayscale.

Earlier, the head of the Commission confirmed that most cryptocurrencies are securities and fall under the jurisdiction of the agency. In his view, the vast majority of digital assets meet the definition of investment contracts and should be regulated accordingly.

In July, Gensler requested additional funding of $109 million to strengthen investor protection in the crypto market.

In August, US Representative Warren Davidson again called for Gary Gensler to be removed from his position as head of the SEC due to the unsuccessful proceedings against Grayscale.

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