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The Chairman of the United States Securities and Exchange Commission (SEC) â Gary Gensler â told members of the US Army to refrain from investing in cryptocurrencies.Â
He believes the sector lacks proper regulation and most digital assets will collapse in the future.
Another Wave of Scepticism
One of cryptoâs keenest critics â Gary Gensler â launched another bashing manifest against the industry. In a recent Twitter Space, he pointed out that an increasing number of US soldiers have shown interest in the digital asset sector.Â
However, he claimed that the niche looks like the âWild Westâ due to its unregulated nature, meaning that people should not interact with it. The SEC Chairman also thinks most of the existing cryptocurrencies will crash at some point, triggering painful losses for investors:
âMost of these 10 or 15,000 tokens will fail. Thatâs because venture capital fails, new startups fail â but also because history tells us that thereâs not much room for micro currencies, meaning, you know, we have the US dollar and Europe has the euro and the like.â
Gary Gensler, Source: Reuters
Gensler advised soldiers not to âget caught up in the FOMO â the fear of missing out,â maintaining that bitcoin and the alternative coins are ânon-compliantâ and âhighly speculative.â
SEC Commissioner Caroline Crenshaw also joined the discussion, stating that cryptocurrencies are well-known for being involved in fraudulent schemes.
âThey claim to be transparent, whatâs on the blockchain is transparent, but the rest of whatâs there is not transparent, and I think there have been some examples of that recently,â she concluded.
Tough Stance But With a Few Friendly Winks
Despite criticizing the cryptocurrency industry, the SEC has also displayed some kind of positive view of it over the past years.
The Commission vowed not to follow Chinaâs example and ban everything related to digital assets in October 2021. Instead, Gensler said the agency will collaborate with bank regulators to impose enhanced supervision on the sector.
The SEC doubled down a few days later, approving the launch of ProShares Bitcoin Strategy ETF (BITO) â the first BTC Futures ETF in the US. Back then, Gensler commented:
âI think that we in the official sector should be technology neutral, but not policy neutral.â
The Chairman said at the beginning of last year that the watchdog will focus on applying stricter rules on cryptocurrency exchanges. Despite those efforts, several platforms collapsed in 2022, with FTX being the most notable example.
The post SEC Chair Gensler Advises US Troops to Stay Away From Crypto appeared first on CryptoPotato.
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