Gary Gensler has described the cryptocurrency market as “rife with bad actors.” The top financial cop made the remarks in a January 8 interview with Bloomberg TV, in which he discussed the enforcement actions under his leadership and addressed persistent compliance issues in the crypto space. A Tenure Marked by Crypto Scrutiny In the sit-down with David Gura, the 67-year-old, who is due to depart the U.S. Securities and Exchange Commission (SEC) in about a week, outlined the challenges posed by the digital asset industry, which, despite making up less than 1% of the $120 trillion U.S. capital markets, has attracted significant attention from regulators and the public. Since taking office, Gensler has overseen 100 enforcement actions related to crypto, building on the work of his predecessor, Jay Clayton, who initiated 80 such cases during his tenure. The actions targeted fraud, scams, and non-compliance with securities laws. According to him, most digital currencies meet the criteria for securities and should be regulated as such. Additionally, he claimed that many crypto projects operate outside legal boundaries, which exposes investors to significant risks. “Right now, the crypto market is rife with bad actors. We’ve seen this over the last few years, with intermediaries—whether they call themselves exchanges, brokers, or custodians—not complying with securities laws and putting the public at risk,” said Gensler. The former MIT professor also questioned the viability of most cryptocurrencies in the market, suggesting that many of them won’t survive. Further, he called out the sector for being overly driven by sentiment rather than fundamentals, a factor he believes hugely contributes to its volatility. Debunking the “Anti-Crypto” Label The SEC chair has faced considerable criticism from pro-crypto figures for his regulation-by-enforcement approach to the industry. Some, like Minnesota lawmaker Tom Emmer, previously described his tenure as “the most destructive and lawless” in history. Others, like Ripple CEO Brad Garlinghouse, described it as a ” reign of terror ,” pushing the industry to rally behind pro-crypto candidates in the November polls, which saw Donald Trump return to the White House and the United States gain the most crypto-friendly Congress ever. On his part, Gensler accepted the personal challenges of leading a high-profile regulatory body, remarking, “If you’re not willing to be attacked, you can’t debate policy.” However, he rejected his characterization as anti-crypto, pointing to his academic background at MIT, where he studied and taught blockchain technology, as evidence of his interest in the sector. “My role as SEC Chair is to ensure investor protection and market integrity. It’s not about being pro or anti-crypto; it’s about ensuring that intermediaries and projects comply with the law,” he explained. The post Departing SEC Chair Warns of Bad Actors in Crypto Market appeared first on CryptoPotato .
