Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), reflected on crypto industry’s future during a recent interview ahead of his scheduled departure on January 20, 2025. Known for his assertive stance on regulating crypto markets, Gensler highlighted the agency’s progress in tackling fraud and ensuring investor protection in a sector he once likened to the “Wild West.”
Gary Gensler’s Take on Crypto’s Future in U.S.
“I think we’ve done some good things,” Gary Gensler said, addressing the SEC’s efforts to rein in the largely unregulated crypto market. Since his predecessor Jay Clayton brought 80 enforcement actions, Gensler noted, “We’ve brought in about 100 in our four years,” targeting what he described as a field “rife with bad actors.”
Under Gensler’s leadership, the SEC has focused on addressing non-compliance in the crypto industry. He emphasized that the agency’s enforcement actions are part of a broader mission to protect everyday investors. “Our clients, ultimately, are people at their kitchen tables,” he stated in a Bloomberg TV interview.
Securities and Exchange Commission Chair Gary Gensler says that crypto is “rife with bad actors” https://t.co/y7Ay3mGxJg pic.twitter.com/iFWjUuHkOl
— Bloomberg TV (@BloombergTV) January 8, 2025
FTX Collapse Steals The Spotlight
Gensler acknowledged the speculative nature of the crypto market, especially the thousands of altcoins beyond Bitcoin and Ethereum. “These 10,000 to 15,000 projects… many of them will not survive,” he remarked, comparing them to venture capital investments. He expressed concern about pump-and-dump schemes and high-profile fraud cases, such as the collapse of FTX and its founder, Sam Bankman-Fried.
When asked if the enforcement actions had brought change, Gensler responded, “It’s a field that built up around non-compliance. And I’m proud of what we’ve done… but I think there’s still work to be done.”
Gensler also addressed perceptions of his stance on crypto, which many had anticipated would be favorable due to his academic background. Reflecting on the shift from academia to regulation, he explained, “When you’re in academia… you can study something and observe it. But then when you’re in this job… it’s a law enforcement agency.”
As Gensler prepares to leave office, he reiterated the importance of full and fair disclosures for investors. Less than 10% of Americans invest in crypto, and he emphasized that they deserve protection from fraud and manipulation.
Also Read: Republican Sen. Cynthia Lummis Discusses Crypto Law Reforms With SEC Chair Nominee Paul Atkins
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