The chairman of the US Securities and Exchange Commission (SEC) in an interview with CoinDesk said that the digital finance industry has become a breeding ground for fraud cases coupled with high-profile bankruptcies.

Gary Gensler clarified that the agency he heads acts as the main government agency regulating the US crypto industry. The official said that a huge proportion of fictitious crypto-entrepreneurs initially build their business models on taking funds from gullible investors and absolute non-compliance with laws.

“There are too many scams and bankruptcies in the cryptocurrency industry, and many of the projects are just speculative investment contracts. Investors should exercise extreme caution and be mentally prepared to lose 100% of their assets,” the SEC chairman warned Americans.

Gensler said he has deep respect for many in the digital finance industry, but does not believe that investors receive comprehensive information about the current and future value of crypto assets. Already at the stage of licensing their activities, participants in this market are disingenuous about their desire to comply with current US laws, including anti-money laundering rules, the head of the regulatory agency was indignant. But in fact, the senior official insists, market participants are unable to protect their clients from fictitious trading, offer unregistered securities, assets with dubious real value, and also trade against the interests of investors.

Earlier, lawyer John Deaton, who defends the interests of large cryptocurrency companies, shared the assumption that the main cryptoseptic of the United States, Senator Elizabeth Warren, who was entrusted with overseeing the activities of the SEC, conspired with Gary Gensler against the cryptocurrency community.