Gary Gensler stressed that investors around the world have “lost too much money” due to cryptocurrency firms refusing to comply with regulators, including the SEC.
He noted that while the digital currency industry itself is a small part of the US and global financial markets, the actions of unscrupulous entrepreneurs in this area cast a shadow on the entire financial industry. This makes it more difficult for crypto companies themselves and for firms in other industries to raise capital.
“This is a new area, and simply because they are registering their crypto assets on a distributed ledger, they feel they don’t have to comply with time-tested laws. There needs to be disclosure, it makes the market more efficient, it helps with price analysis, and it makes the valuation of a company more in line with its prospects,” the SEC chief emphasized.
Gary Gensler has previously spoken out on numerous occasions about the large scale of fraud in the cryptocurrency space and frequent cases of asset price manipulation.
Source: Bits
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