Gensler on Crypto: Too Many People Have Been Hurt

During a recent interview with Bloomberg, U.S. Securities and Exchange Commission Chair Gary Gensler stated that "all too many people" had been hurt by the crypto industry. 

"All too many people had been hurt, all too many people have lost money and lined up in bankruptcy courts to deal with their claims," Gensler stated. 

He has noted that a lot of regular investors have lost money since they did not have proper information about the projects that they were investing in. 

"We do everything we do within the law, and how courts interpret the law. If the courts interpret it differently, we adjust. That's what we do. It's part of our great democracy" Gensler said. 

The SEC chair has reiterated that it is important to provide the public with appropriate disclosures. Falling to do so could potentially undermine trust in capital markets. 

The SEC boss has noted that there is nothing incompatible about blockchain technology and the existing security laws. 

While investors should be able to make their own decisions, the SEC considers it important to guard them against potential conflicts of interest. "It is a field that has a lot of conflicts in the middle of it," Gensler said. 

"Happy Sweet 16"

Gensler has also recalled that Bitcoin is on track to turn 16 this week. Satoshi Nakamoto, the fabled cryptocurrency of the original cryptocurrency, published their groundbreaking white paper on Oct. 31. 

"This Halloween, it will be 16 years since Satoshi Nakamoto wrote that white paper. So, happy Sweet 16 in a week!"  

As reported by U.Today, Gensler has repeatedly recognized Bitcoin as a non-security. However, the regulatory status of the vast majority of other tokens remains unclear.