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    Gensler warns crypto industry 'will not long persist' without investor protection

    theblock.co 26/09/2024 - 16:07 PM

    Gensler’s Warning on Crypto Industry

    U.S. Securities and Exchange Commission Chair Gary Gensler reiterated the importance of investor protections for the survival of the crypto industry during an interview on CNBC’s Squawk Box.

    In the interview, Gensler emphasized that the crypto market needs transparency, citing previous turmoil in 2022 when several firms, including the crypto exchange FTX and hedge fund Three Arrows Capital, collapsed. He remarked on the serious repercussions faced by leading figures in the crypto space, including former FTX CEO Sam Bankman-Fried, who was sentenced to nearly 25 years in prison for fraud.

    Gensler stated, “Look at the leading lights in this field… A number of them are in jail right now… there’s been tens of billions of dollars of losses and bankruptcies.” He warned that the crypto field would not sustain itself without building trust and protecting investors.

    In regard to cryptocurrency classification, Gensler remarked that most cryptocurrencies are securities and called for crypto platforms to register with the SEC. He made an exception for bitcoin, stating that it is not deemed a security and can be accessed through exchange-traded products.

    Politicians’ Perspectives on Crypto

    Gensler was also asked about presidential candidates Vice President Kamala Harris and Donald Trump, both of whom have expressed more favorable views toward crypto. Harris mentioned her support for innovative technologies while ensuring consumer protection, whereas Trump has proposed to end what he views as an unlawful crackdown on crypto and introduced his own crypto initiative, World Liberty Financial.

    Gensler did not comment on the election but reinforced that investor protection is crucial for fostering innovation, stating, “Innovation is compatible with investor or consumer protection.”




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