Thursday, September 28, 2023

The cryptocurrency sector is plagued by fraud

Key facts:
  • Gensler emphasized that, as the regulator of the securities market, the SEC should act as a policeman.
  • Regarding the possible approval of a spot Bitcoin ETF, he said: “we are still reviewing.”

In testimony before an oversight committee of the United States Senate, Gary Gensler, Chairman of the Securities and Exchange Commission (SEC) today maintained his usual aggressive attitude towards the bitcoin (BTC) market and other cryptocurrencies. . He has made it clear that he wants to continue the regulatory pressure he has been exerting on the industry since he took office as head of the agency in April 2021.

So before the Senate Banking, Housing and Urban Affairs Committee, Gensler rated the cryptocurrency sector as the worst performing in the stock market of the United States.

“I’ve been in the financial world for 44 years. I’ve never seen a place full of abuse. “It’s horrible,” Gensler said.

His opinion was echoed by the chairman of the Senate Banking Committee, Sherrod Brown, who agreed with that The bitcoin and other cryptocurrency industries are full of “fraud.” frauds and abuses.”

“I’m glad the SEC is using its tools to crack down on abuse and enforce the law,” added Brown before praising the management of Gensler.

The regulatory pressure from the agency has forced many companies to find new destinations to settle, while the industry criticizes that the United States does not have clear rules for the cryptocurrency sector and therefore The SEC regulates by applying the rules and not based on them.

The agency has already suffered two defeats in court, but with Gensler’s behavior in the Senate, it is clear that he is not discouraged, and he will continue to defend his plans in the cryptocurrency industry remains under the supervisory boot of the SEC. In fact, he said that, as a regulator, the Commission should act as a “vigilant police.”

Gensler stood firm in the face of the senators’ direct questions

When asked by senators about the need to inform the public about the ongoing investigation by the SEC, Gensler refused to do so. “I can’t talk about specific investigations, nor confirm or deny when we started them and We will only make it public once we reach an agreement of the company or file a case in court because this will help protect the public,” he explained.

Then Senator Cortez Masto wanted to know if the SEC is ready to address the fraud that definitely exists in the cryptocurrency sector. And in this Gensler said that “the organization is only 3% larger than eight years ago, so we are not big enough.”

When asked by Senator Bill Hagerty What is required for the SEC to approve a bitcoin spot ETF? Gensler responded: “We’re still reviewing this decision because we’ve had so many requests.”

SEC president Tim Scott explained that must stop “restricting” innovation. “The Securities and Exchange Commission should act to stimulate competition, innovation and economic growth, not stifle them.” However, Gensler kept his smile on and sometimes avoided or gave political answers that could be interpreted in different ways.

Nation World News Desk
Nation World News Desk
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