BCGAME - Free 5BTC Daily Bonus!- Gary Gensler has stepped up the SEC's actions against cryptocurrencies.
- Paul Atkins promises a balanced, pro-innovation approach.
- Lack of transparency in crypto assets remains a concern.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has reiterated his criticism of the cryptocurrency market in an recent interview with Bloomberg Television as he prepares to step down on January 20, 2025. During his tenure, Gensler has stepped up scrutiny of the industry, calling it the “Wild West” due to lack of regulatory compliance and the prevalence of fraudulent practices.
In the interview, Gensler highlighted that many crypto projects are driven by market sentiment rather than solid financial fundamentals. According to him, retail investors often face challenges due to a lack of clear information and the absence of robust protection mechanisms. He stated that most crypto assets likely fall under the definition of securities and should therefore adhere to existing laws.
Under Gensler’s leadership, the SEC has stepped up enforcement actions against cryptocurrency platforms, increasing the number of cases related to the sector to about 100. Notable cases include the actions against Ripple Labs and Binance. In the Ripple case, a partial ruling in 2023 declared that the XRP token was not considered a security in secondary market sales, but was institutionally classified as such. The lawsuit against Binance, filed in June 2023, accused the platform of market manipulation and unregistered transactions.
Despite criticism from industry figures, Gensler defended his approach as necessary to protect investors. He also stressed that while the crypto market represents less than 1% of U.S. capital markets, regulatory attention is essential due to the significant risks associated with it.
With Gensler’s departure, Paul Atkins, known for his pro-innovation stance, will take over as SEC chairman. Atkins has advocated for a more balanced approach that encourages industry growth while maintaining regulatory oversight. His leadership is expected to provide greater regulatory clarity for cryptocurrency companies, addressing issues such as token classification, exchange operations and consumer protection.
While the transition takes place, the market is watching the next regulatory steps with the expectation of a more favorable environment for innovation and investors.
