{"id":6910,"date":"2025-01-09T21:01:59","date_gmt":"2025-01-09T21:01:59","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=6910"},"modified":"2025-01-09T21:01:59","modified_gmt":"2025-01-09T21:01:59","slug":"gary-gensler-blasts-crypto-market-on-his-way-out","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=6910","title":{"rendered":"Gary Gensler Blasts Crypto Market On His Way Out"},"content":{"rendered":"
\n

In an interview<\/a> with David Gura on Bloomberg Markets on Wednesday, outgoing Securities and Exchange Commission (SEC) Chair Gary Gensler reviewed his tenure and the role of crypto within the US capital markets. Gensler, who has less than two weeks left in his term, remained steadfast on his stance toward the digital asset space, calling it \u201crife with bad actors\u201d and stressing that \u201cmany of them will not survive.\u201d<\/p>\n

Crypto Is Still The \u2018Wild West\u2019<\/h2>\n

Gensler began by addressing the criticism he has faced during his tenure. \u201cIt\u2019s a great privilege to be in a role like this,\u201d he said, highlighting that he is the 33rd SEC chair and credits President Joe Biden<\/a> for the appointment. \u201cYou walk into this central square and you debate these important things for 330 million Americans,\u201d he added.<\/p>\n

Asked whether the level of scrutiny he has experienced is different compared to his time as head of the Commodity Futures Trading Commission (CFTC)<\/a> during the global financial crisis, Gensler acknowledged, \u201cIt does change.\u201d However, he maintained that the commission\u2019s chief focus remains \u201clooking out for everyday Americans, trying to lower the cost of the markets [\u2026] It doesn\u2019t surprise me that there\u2019s some in the middle of the market who[\u2026] might have thoughts on that and object.\u201d<\/p>\n

Turning to crypto, Gensler echoed a theme he has repeatedly underscored since taking office: The digital asset industry accounts for less than 1% of the US capital markets\u2014he placed the entire capital market at roughly \u201c$120 trillion\u201d\u2014yet it has demanded significant SEC attention.<\/p>\n

He stood by his earlier \u201cWild West\u201d depiction of crypto, pointing out, \u201cIt\u2019s a field that built up around non-compliance.\u201d He also invoked the enforcement actions pursued under both his tenure and that of his predecessor, Jay Clayton<\/a>. \u201cJay brought 80 enforcement actions in this area. We\u2019ve brought in about 100 in our four years,\u201d Gensler said. \u201cIt\u2019s maybe about 5% of what we do in our law enforcement,\u201d he noted, explaining that the remaining 95% targets traditional scammers and fraudsters.<\/p>\n

Highlighting how sentiment-based and volatile the space is, Gensler divided the digital asset world into two parts: \u201cThis field, it\u2019s rife with bad actors. Let me just split the field into two just for a minute. The public knows a lot about Bitcoin, which depending upon its market value on any given day, is two thirds to 80% of the market value of crypto. And then there\u2019s everything else. Or some people say Bitcoin and Ethereum and everything else.\u201d<\/p>\n

He was blunt in his assessment that the other \u201c10,000 or 15,000\u201d which are projects with no fundamentals which only profit from sentiment shifts. \u201cI\u2019ve never seen a field that\u2019s so much wrapped up in sentiment and not so much about fundamentals. And these 10,000 to 15,000 projects, many of them will not survive. They\u2019re like venture capital investments. They\u2019re not going to survive.\u201d<\/p>\n

Gensler also highlighted that there\u2019s a huge number of \u201csmall pump and dump schemes\u201d. Specifically referencing high-profile enforcement actions, Gensler stated: \u201cWe\u2019ve lived through a few years where, you know, they became notorious, but they\u2019re in jail. The Sam Bankman-Fried<\/a>, the CZ\u2019s and Do Kwon<\/a>\u2019s where tens of billions of dollars were lost by investors.\u201d<\/p>\n

Gensler was also asked about the shift from his time at MIT\u2014where he studied digital assets\u2014to his enforcement-heavy approach at the SEC. He addressed the public perception that he would be a \u201cchampion\u201d of crypto by noting the difference between academic inquiry and regulatory responsibilities. \u201cWhen you\u2019re in academia [\u2026] you can study something and observe it [\u2026] But then when you\u2019re in this job [\u2026] building upon my predecessor[\u2026] It\u2019s a field rife with challenges and noncompliance with the securities laws.\u201d<\/p>\n

At press time, Bitcoin traded at $93,253.<\/p>\n

\"Bitcoin<\/div>\n","protected":false},"excerpt":{"rendered":"

In an interview with David Gura on Bloomberg Markets on Wednesday, outgoing Securities and Exchange Commission (SEC) Chair Gary Gensler reviewed his tenure and the role of crypto within the US capital markets. Gensler, who has less than two weeks left in his term, remained steadfast on his stance toward the digital asset space, calling […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-6910","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6910","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6910"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/6910\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6910"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6910"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6910"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}