Former SEC Chair Gary Gensler defended the agency’s regulatory stance on cryptocurrencies during his tenure on Wednesday, saying it was all aimed at ensuring “investor protection.”
Gensler Calls Crypto ‘Risky’ Asset
During an interview with CNBC, Gensler was asked whether he made the “right calls” as SEC Chair, considering the slew of pro-cryptocurrency measures undertaken by incumbent chair Paul Atkins.
“Yes,” responded Gensler. “We were consistently trying to ensure investor protection.”
He highlighted high-profile cryptocurrency fraud cases in his time, including the Sam Bankman-Fried case.
“It’s a field that trades mostly on momentum, mostly on, frankly, hype for investors,” Gensler argued. He deemed cryptocurrencies a “risky” asset class for everyday investors, with most tokens, except Bitcoin (CRYPTO: BTC), lacking fundamentals.
The 180 Degree Pivot Under Atkins
Gensler’s tenure as SEC Chair, which ended in January, was marked by a stringent regulatory approach toward cryptocurrencies, including lawsuits against Coinbase, Kraken and Ripple Labs.
This approach faced opposition from prominent names like Mark Cuban and Anthony Scaramucci, who argued that it stifled innovation and lacked clear regulatory guidelines.
Atkins-led SEC, on the other hand, has launched initiatives such as "Project Crypto" to adapt to blockchain-based financial systems and teamed up with the CFTC to issue clear guidelines for the industry. Moreover, lawsuits against Coinbase and Kraken have been withdrawn.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
