SEC Chair Again Criticizes Crypto Industry: Widespread Violations and "Highly Centralized"
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SEC Chair Again Criticizes Crypto Industry: Widespread Violations and "Highly Centralized"
Gensler stated that these violations have already harmed the interests of the general public.
Navigating Web3 tides with focused insightsSource: cryptoslate
Compiled by: Blockchain Knight
In an interview with Bloomberg on June 25, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler reiterated his previous criticisms of the crypto industry, stating that the sector is highly concentrated and rife with "serious misconduct."
Gensler downplayed claims of decentralization in the crypto industry, saying a small number of platforms are "centralizing and mixing things we would never allow elsewhere."
He cited specific violations such as trading against customers, spoofing, and investing ahead of contract listings.
He noted that many so-called "leaders" in the crypto asset space are either already "in prison" or "awaiting incarceration."
Gensler added: "You might scoff at this, but it's a serious matter—not overblown. This is fundamentally about investor protection."
The misconduct Gensler referred to involves not only securities laws, but also the Bank Secrecy Act, the Commodity Exchange Act, and anti-money laundering regulations.
Gensler said many crypto asset platforms work with numerous token issuers, and under national law and the stance of the Supreme Court, these tokens qualify as securities without prejudging each individual case.
These remarks echo Gensler’s prior statements that most crypto assets are securities.
He emphasized that tokens are offered as investment contracts, and said the U.S. public has not received legally required disclosures.
Gensler pointed out that intermediaries such as crypto asset exchanges and brokers handle hundreds of assets, raising the question: "Isn't there some entrepreneur in the middle of these products? That seems a bit illogical."
Gensler said this issue, combined with widespread misconduct, has led the SEC to file lawsuits against numerous companies, as the violations harm the broader public interest.
Additionally, Gensler declined to answer political questions, including Mark Cuban’s earlier speculation that Gensler’s crypto policies might cost Biden the election.
To that, Gensler simply replied: "I don't talk about elections, but others can."
He also declined to comment on the broader political movements sparked by crypto assets. Regarding the public's keen interest in the approval of spot Ethereum ETFs, Gensler offered no specifics, merely stating that the process is "moving along smoothly."
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