SEC Chair Gensler Warns of Crypto Fraudsters and Resistance to Regulation

SEC Chair Gary Gensler compared the current crypto market to the 1920s U.S. stock market, saying that it is full of “hucksters,” “fraudsters” and “Ponzi schemes.” He argued that the “crypto securities markets” of today should benefit from securities laws, just as the U.S. securities markets have over the past 88 years. Gensler denied that separating exchange, broker-dealer, and clearing functions isn’t possible, stating that it simply requires work. He believes that scams are more likely to happen in markets whose issuers and intermediaries fail to comply with foundational laws.