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The President of the Securities and Exchange Commission (sec), gary gensler, cautioned that most crypto tokens will fail. He urged investors not to "get caught in the fomo, afraid to miss out", stressing that cryptography is a highly speculative and non-compliant asset class.
Gary Gensler Expects Most Crypto to Fail
SEC He urged investors not to "get caught up in the FOMO, fearing to miss out", pointing out that cryptography is a highly speculative and non-compliant asset class.
Calling crypto a "highly speculative, volatile asset class," gensler stressed that most cryptocurrencies "are not compliant with securities laws.
Calling crypto a "highly speculative, volatile asset class," Gensler stressed that most cryptocurrencies "are not compliant with securities laws.
Most of these 10,000 or 15,000 tokens will fail.
Noting that cryptography is "the Wild West", he also surveyed instances of use of most tokens.
The head of the SEC cautioned:
Most of that 10,000 or 15,000 chips are going to fall apart. The head of the sec warned: most of those 10,000 or 15,000 chips are going to fail." That's because venture capital fails, the new start-ups do not succeed, but also because history tells us that there is not a lot of room for micro-coins, meaning, you know, we have the United States dollar and Europe has the euro and things of that nature," he said.
Stressing that cryptography is "generally non-compliant," gensler went on to advise investors: don't get caught in the fomo, fear of missing. In May last year, following the collapse of the terra/luna ecosystem, he similarly warned that a lot of crypto tokens will fail.
The SEC chief has been criticized by lawmakers and industry participants for taking an enforcement-centric approach to regulating the crypto industry. In November last year, Gensler affirmed that the securities regulator’s enforcement division will remain focused on crypto.
It was not the first time that Gensler warned against the failure of crypto chips.
In May of last year, after the collapse of the terra/luna ecosystem, he also warned that many crypto chips are going to fail. The Secretary General has been criticized by legislators and industry participants for adopting a law enforcement approach to regulating the crypto industry.
