{"id":79988,"date":"2023-06-09T16:07:34","date_gmt":"2023-06-09T13:07:34","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=79988"},"modified":"2025-09-11T14:09:53","modified_gmt":"2025-09-11T11:09:53","slug":"gary-gensler-says-the-crypto-market-is-rife-with-fraud","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/gary-gensler-says-the-crypto-market-is-rife-with-fraud\/","title":{"rendered":"Gary Gensler says the crypto market is rife with fraud"},"content":{"rendered":"<p>The crypto industry is full of fraud and resembles the stock market of the 1920s before regulation. This <a href=\"https:\/\/www.sec.gov\/news\/speech\/gensler-remarks-piper-sandler-060823\">said<\/a> by <span data-descr=\"Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> Chair Gary Gensler.<\/p>\n<p>He titled his speech at the Piper Sandler Global Exchange &#038; Fintech conference &#8220;We&#8217;ve already seen this story&#8221;.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Traders, fraudsters, scammers, Ponzi schemes. The public has lined up to sue in bankruptcy cases,&#8221; the agency head described the state of the digital-asset industry.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Gary\u2019s latest crypto attacks. It\u2019s definitely personal for him\u2026 <a href=\"https:\/\/t.co\/b0UcDx4I92\">pic.twitter.com\/b0UcDx4I92<\/a><\/p>\n<p>\u2014 Coin Bureau (@coinbureau) <a href=\"https:\/\/twitter.com\/coinbureau\/status\/1666892861617365005?ref_src=twsrc%5Etfw\">June 8, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In his view, the existing laws are fully applicable to participants in the industry. Universal rules set measures to protect investors, including disclosure, preventing fraud, manipulation, conflicts of interest, separation of funds and duties, and other requirements, noted Gensler.<\/p>\n<p>Crypto firms are capable of complying with the established norms, and they should not rely on financial innovation in this regard, the regulator head said. This applies equally to centralized intermediaries like exchanges, as well as DeFi service providers such as <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">staking<\/a>.<\/p>\n<p>He quoted Gurbir Grewal, the SEC\u2019s Director of Enforcement:<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;You can\u2019t simply ignore the rules because you don\u2019t like them or prefer others \u2014 the consequences for investors are too great.&#8221;<\/p>\n<\/blockquote>\n<p>It was deliberate non-compliance with the investor-protection norms long established on traditional markets that led to the collapse of projects such as <a href=\"https:\/\/u1f987.com\/en\/news\/terras-death-spiral-how-and-why-luna-and-ust-collapsed\">Terra<\/a> and drove the bankruptcies of BlockFi, <a href=\"https:\/\/u1f987.com\/en\/news\/what-happened-to-celsius-cel\">Celsius<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\">FTX<\/a> or Genesis, Gensler said. The SEC\u2019s claims against <a href=\"https:\/\/u1f987.com\/en\/news\/sec-sues-bittrex-and-bittrex-global\">Bittrex<\/a>, <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-binance-and-changpeng-zhao\">Binance<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-coinbase-exchange\">Coinbase<\/a> also do not breach existing norms, he stressed.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;In the end, markets are built on trust. For 90 years that trust rested on compliance with securities laws. The crypto industry should not undermine the public&#8217;s trust in capital markets or harm investors,&#8221; concluded Gensler.<\/p>\n<\/blockquote>\n<p>Earlier, the head of the SEC expressed <a href=\"https:\/\/u1f987.com\/en\/news\/gensler-questions-the-need-for-cryptocurrencies\">doubts about the need<\/a> for the modern crypto world, given that fiat currencies such as the dollar or euro are already digital.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto industry is full of fraud and resembles the stock market of the 1920s before regulation, according to SEC Chair Gary Gensler.<\/p>\n","protected":false},"author":1,"featured_media":79989,"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":[1181,1138,36,128],"class_list":["post-79988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-gary-gensler","tag-opinions","tag-regulation","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=79988"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79988\/revisions"}],"predecessor-version":[{"id":79990,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/79988\/revisions\/79990"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/79989"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=79988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=79988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=79988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}