U.S. Securities and Exchange Commission Chairman Gary Gensler has doubled down on his stance on cryptocurrencies and warned that the sector will not survive without important investor protections.
In an interview with CNBC’s Squawk Box on Thursday morning, Gensler argued that the cryptocurrency industry needs disclosure and pointed to past market turmoil.
Several companies will close in 2022, including cryptocurrency exchanges FTXhedge fund three arrow capital Cryptocurrency Lenders Celsius and GenesisAbove all. FTX CEO Sam Bankman-Fried faces criminal charges and ultimately sentenced He was sentenced to nearly 25 years in prison on fraud-related charges. His counterpart, Caroline Ellison, co-CEO of Alameda Research. sentenced This year marks two years of her role in the FTX collapse. Former CEO of Celsius Alex Masinsky He is awaiting a criminal trial scheduled for early next year.
“Look at the leaders in this space in crypto just two years ago. Many of them are in prison now, and I’m not just talking about SBF (Sam Bankman-Fried)… It’s been decades. Billions. There have been dollar losses, bankruptcies, etc.,” Gensler said Thursday. “What innovation sector can survive in America without building trust in it and protecting investors and consumers?”
He later said, “This sector is not going to last long without investor protection or consumer protection.”
Gensler also called for most cryptocurrencies to be securities and for cryptocurrency platforms to be registered with the appropriate authorities. On Thursday, he reaffirmed that Bitcoin is an exception.
“With respect to Bitcoin, my predecessor and I said it is not a security,” Gensler said. “Now there is a way to actually express that point of view. Buy that point of view through exchange-traded products.”
Trump or Harris
CNBC also asked Gensler for his thoughts on presidential candidate Vice President Kamala Harris and his views on Donald Trump, who suggests he may be open to cryptocurrencies. Harris said twice: last week Her administration said it would “promote transformative technologies like AI and digital assets while protecting consumers and investors.”
Meanwhile, Trump pledged: After ending the “illegal and un-American crackdown,” published His cryptocurrency project called World Liberty Financial has attracted a lot of people. skepticism. Trump also said he would fire Gensler if he wins a second term.
Gensler declined to comment on the election.
“I think it’s very clear that investor protection in policy helps build innovation. Innovation can be compatible with investor or consumer protection, whether it’s about cars, cribs or anything else,” Gensler added. “I think they complement each other.”
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