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Gary Gensler Says Crypto Industry Is ‘Rife With Fraud’ in Heated Interview

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Gary Gensler, head of the Securities and Exchange Commission (SEC), offered some of his most vehement rhetoric to date about the cryptocurrency industry in a Friday interview on Bloomberg Daybreak Podcast.

The crypto sector, Gensler said, is “a field rife with fraud, rife with hucksters,” and cast doubt on the prospects for a Bitcoin ETF in an industry with such a poor compliance record. He also called for “more cops on the beat” to bring bad actors to justice.

Gensler’s Rhetoric Demonizes Crypto

When the host of the podcast asked Gensler about the ramifications of Ripple’s partial victory over the SEC in a long-running lawsuit, Gensler evaded the question.

The host noted that the ruling confirms that Ripple’s token, XRP, is a security only in its sale to institutional investors. Not when people trade it on public exchanges.

Gensler said he was “disappointed” by the ruling, the host noted, before asking him to elaborate. The SEC is not accepting the decision lying down. But what did the agency mean when it said it “intends to seek further review”?

The SEC chair’s answer was vague:

“The Commission has not acted on that, and if the staff makes a recommendation, we’ll have a discussion of it and we’ll take it up then. But I don’t really have anything more for you, for that.”

Gensler’s Vague Answers and Broad Hostility to Crypto

The host then asked whether the Ripple ruling complicates the SEC’s efforts to regulate tokens as securities.

Refusing to give a straight answer, Gensler changed tack. He said investors should know that crypto is a “highly speculative” asset class. And that they should neve

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Author: Michael Washburn

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