United States Securities and Exchange Commission (SEC) Chair Gary Gensler recently gave a speech at the 2023 Securities Enforcement Forum, where he shared insights into the regulatory body’s enforcement actions, which amounted to $5 billion in judgments and orders. However, it was Gensler’s comments about the cryptocurrency market that caught the attention of the crypto community on social media. Gensler stated, “Don’t get me started on crypto. I won’t even name all the individuals we’ve charged in this highly noncompliant field.”
In his speech, Gensler discussed the economic perspective of the SEC’s enforcement actions, highlighting that the agency filed over 780 enforcement actions in 2023, including more than 500 standalone cases. These actions resulted in $5 billion in judgments and orders, with $930 million distributed to harmed investors.
Gensler also revealed that the SEC has filed lawsuits against 40 firms for violating various rules and regulations since December 2021, leading to penalties totaling over $1.5 billion. Additionally, the SEC settled recordkeeping-related charges with 23 firms in the last fiscal year alone.
Expanding on his previous stance, Gensler reiterated that most of the crypto market falls under the securities category and should be governed by the same laws. He explained the concept of an investment contract and why a significant portion of the cryptocurrency market fits this definition. According to Gensler, the majority of cryptocurrency assets would pass the investment contract test, subjecting them to securities regulations.
Drawing parallels with the financial landscape of the 1920s, Gensler compared the current crypto ecosystem to a time when securities laws were not in place. He argued that without clear regulations, the crypto market is susceptible to scams, frauds, and bankruptcies. Consequently, he believes stricter regulations are necessary.
Gensler’s criticism of the crypto market is not new, as he has held a similar stance for several years. However, there is increasing pressure from members of Congress, the crypto community, and key businesses operating in the U.S. for Gensler to provide more clarity on crypto regulations.
It is worth noting that the source of this information is not mentioned, as per the given rules.
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀