{"id":88610,"date":"2023-12-23T11:33:52","date_gmt":"2023-12-23T09:33:52","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=88610"},"modified":"2025-09-13T19:08:09","modified_gmt":"2025-09-13T16:08:09","slug":"sec-chair-criticises-crypto-industry-for-regulatory-non-compliance","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/sec-chair-criticises-crypto-industry-for-regulatory-non-compliance\/","title":{"rendered":"SEC chair criticises crypto industry for regulatory non-compliance"},"content":{"rendered":"<p>SEC chair Gary Gensler accused the crypto industry of failing to meet regulatory requirements. The crypto community criticised him.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">There is a lot of noncompliance in the crypto space. It undermines confidence when so many people have been hurt and all they can do is stand in line in the bankruptcy court. Further, this can make it hard for the good faith actors to compete. <a href=\"https:\/\/t.co\/9L1WKa4R6S\">pic.twitter.com\/9L1WKa4R6S<\/a><\/p>\n<p>\u2014 Gary Gensler (@GaryGensler) <a href=\"https:\/\/twitter.com\/GaryGensler\/status\/1737935615033737332?ref_src=twsrc%5Etfw\">December 21, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;There is a lot of noncompliance in the crypto industry. It undermines trust, as many of those harmed can only stand in line in bankruptcy court. It can also make it hard for good-faith actors to compete,&#8221; he said.<\/cite><\/p><\/blockquote>\n<p>In a comment to <a href=\"https:\/\/www.coindesk.com\/policy\/2023\/12\/22\/sec-chair-gary-gensler-far-too-many-frauds-and-bankruptcies\/\">CoinDesk<\/a>, the SEC chair noted that the industry has &#8220;far too many frauds and bankruptcies.&#8221; Despite &#8220;deep respect for investors,&#8221; Gensler questioned whether projects whose tokens investors buy disclose enough information.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;Investors must be vigilant and cautious; they must be prepared to lose 100% of their assets. If you can find a site and read about them on CoinDesk, you are probably betting on these entrepreneurs,&#8221; he explained.<\/cite><\/p><\/blockquote>\n<p>According to the official, opinion leaders in the crypto industry have large social-media followings, and engagement with which continues around the clock.<\/p>\n<p>Gensler also questioned the real value proposition of most tokens. Many projects are merely &#8220;speculative investment contracts,&#8221; he noted.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;If there is something good, we can understand it. What is the value proposition of owning a decentralised token?&#8221;, he said.<\/cite><\/p><\/blockquote>\n<p>Coinbase <a href=\"https:\/\/forklog.com\/en\/news\/coinbase-sues-sec-to-compel-a-response-to-its-rulemaking-petition\">has repeatedly tried<\/a> to obtain clarifications on industry compliance.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;SEC did not take a clear position and relied on regulation through enforcement,&#8221; an X post notes, citing Reuters and Forbes.<\/cite><\/p><\/blockquote>\n<p>Co-founder of the meme cryptocurrency <a href=\"https:\/\/forklog.com\/en\/news\/what-is-dogecoin-doge\">Dogecoin<\/a>, Billy Markus, said that Gensler &#8220;never laid out real rules&#8221; and called him &#8220;useless in every respect.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">bro you\u2019ve never laid out any actual rules, you just hand wave <\/p>\n<p>you\u2019re basically useless in every single way<\/p>\n<p>\u2014 Shibetoshi Nakamoto (@BillyM2k) <a href=\"https:\/\/twitter.com\/BillyM2k\/status\/1737955863007269304?ref_src=twsrc%5Etfw\">December 21, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\n<cite>&#8220;Stunning hypocrisy from the person who cozied up to <a href=\"https:\/\/forklog.com\/en\/news\/greed-and-recklessness-why-the-ftx-collapse-is-being-likened-to-the-2008-crisis\">the biggest fraud<\/a> in recent memory. Gensler is a political liability whose actions have decimated consumers and destroyed the integrity of the SEC, while remaining buddy-buddy with Wall Street&#8221;, wrote Brad Garlinghouse, head of Ripple.<\/cite><\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Stunning hypocrisy from the person who cozied up to the biggest fraud in recent memory. <\/p>\n<p>Gensler is a political liability whose actions have decimated consumers and destroyed the integrity of the SEC, while remaining buddy-buddy with Wall Street. <a href=\"https:\/\/t.co\/hAgjJ9IsGR\">https:\/\/t.co\/hAgjJ9IsGR<\/a> <a href=\"https:\/\/t.co\/D3pz4Dq3yy\">https:\/\/t.co\/D3pz4Dq3yy<\/a><\/p>\n<p>\u2014 Brad Garlinghouse (@bgarlinghouse) <a href=\"https:\/\/twitter.com\/bgarlinghouse\/status\/1737977947514982881?ref_src=twsrc%5Etfw\">December 21, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In 2023, American politicians and crypto-industry figures repeatedly criticised the head of the SEC and the agency as a whole. In January, Grayscale Investments CEO Michael Sonnenschein <a href=\"https:\/\/forklog.com\/en\/news\/grayscale-chief-criticises-secs-approach-to-cryptocurrency-regulation\">accused<\/a> the Commission of dragging its feet on regulating the industry.<\/p>\n<p>In April, SkyBridge Capital CEO <a href=\"https:\/\/forklog.com\/en\/news\/anthony-scaramucci-slams-sec-chief-and-calls-bitcoin-a-commodity\">criticised<\/a> Gensler for the &#8220;disarray&#8221; at the SEC. In the same month, the official came under fire from Republicans during Congressional hearings <a href=\"https:\/\/forklog.com\/en\/news\/republicans-grill-sec-chair-during-congressional-hearings\">for an undefined position on cryptocurrencies<\/a>.<\/p>\n<p>In June, lawmakers <a href=\"https:\/\/forklog.com\/en\/news\/house-republicans-introduce-bill-to-oust-gary-gensler\">introduced<\/a> a bill to remove Gensler. In August, after <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-price-surpasses-27500-after-court-ruling-in-grayscales-favour\">Grayscale&#8217;s victory<\/a> in court against the SEC, the proposal to replace the agency&#8217;s head <a href=\"https:\/\/forklog.com\/en\/news\/congress-proposes-to-oust-sec-chair-after-court-ruling-on-bitcoin-etf\">was floated again<\/a>.<\/p>\n<p>In December, US presidential candidate Vivek Ramaswamy <a href=\"https:\/\/forklog.com\/en\/news\/us-presidential-candidate-criticises-sec-chief-and-crypto-regulation\">criticised<\/a> Gensler&#8217;s work and pledged to significantly cut the Commission&#8217;s staff if elected.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SEC chair Gary Gensler accused the crypto industry of regulatory non-compliance. The crypto community criticised him.<\/p>\n","protected":false},"author":1,"featured_media":88611,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1181,1150,128],"class_list":["post-88610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-gary-gensler","tag-news-plus","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88610","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=88610"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88610\/revisions"}],"predecessor-version":[{"id":88612,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/88610\/revisions\/88612"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/88611"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=88610"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=88610"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=88610"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}