SEC Chair: Crypto Is a Field Rife With Fraud, Abuse, Misconduct — ‘It’s Daunting’

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler testified earlier the Senate Banking Committee, stating that crypto is “a tract which is rife with fraud, abuse, and misconduct.” He besides stated that the securities regulator is inactive reviewing applications for spot bitcoin exchange-traded funds (ETFs).

Gary Gensler’s Testimony Before Senate Committee

The president of the Securities and Exchange Commission (SEC), Gary Gensler, talked astir cryptocurrency during his grounds earlier the U.S. Senate Committee connected Banking, Housing, and Urban Affairs connected Tuesday.

Reiterating his presumption that most crypto tokens are securities, Gensler told lawmakers: “Without prejudging immoderate 1 token, the immense bulk of crypto tokens apt conscionable the concern declaration test. Given that astir crypto tokens are taxable to the securities laws, it follows that astir crypto intermediaries person to comply with securities laws arsenic well.”

The SEC main stressed:

In presumption of crypto … I’ve been astir concern for 44 years present … and I’ve ne'er seen a tract that’s truthful rife with misconduct. It’s conscionable – it’s daunting.

He further described the crypto industry: “Right now, unfortunately, there’s important non-compliance and it’s a tract which is rife with fraud, abuse, and misconduct.”

Senator Bill Hagerty (R-TN) asked Gensler during the proceeding what the SEC needs to spot from issuers to o.k. spot bitcoin exchange-traded funds (ETFs) pursuing a recent tribunal ruling successful favour of Grayscale Investments. The tribunal recovered that the securities regulator’s denial of Grayscale’s spot bitcoin ETF exertion was “arbitrary and capricious.” The SEC seat replied:

We are inactive reviewing that determination … We person aggregate filings astir bitcoin exchange-traded products truthful it’s not conscionable that 1 you mentioned but it’s aggregate others. We are reviewing them and I’m looking guardant to the staff’s recommendations.

What bash you deliberation astir Gary Gensler’s statements? And, bash you deliberation the SEC volition soon o.k. a spot bitcoin ETF? Let america cognize successful the comments conception below.