The chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler says that cryptocurrency investors are inadequately protected.
Testifying before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on Tuesday, Gensler stated that cryptocurrency investors are vulnerable to scams and other illegal activities due to the lack of “enough investor protection” in the space.
“Currently, we just don’t have enough investor protection in crypto finance, issuance, trading, or lending. Frankly, at this time, it’s more like the Wild West or the old world of ‘buyer beware’ that existed before the securities laws were enacted.
This asset class is rife with fraud, scams, and abuse in certain applications. We can do better.”
The SEC chairman says that a significant percentage of players in the cryptocurrency space are disregarding the existing regulations.
“Right now, large parts of the field of crypto are sitting astride of – not operating within – regulatory frameworks that protect investors and consumers,