Blockchain News

U.S. SEC Chair Doubles Down on Crypto, Citing Criminal Activity and Calls for Increased Regulation

In a recent speech at the Piper Sandler Global Exchange and FinTech Conference in New York City, Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), expressed his firm stance on the cryptocurrency industry. Comparing it to the lawless era of the 1920s, Gensler highlighted the presence of criminals and illicit activities in the crypto space, urging for increased regulatory measures. Under Gensler’s leadership, the SEC has taken action against major exchanges like Binance and Coinbase, filing charges related to securities violations and investor protection laws.

Gensler’s Concerns and Criticism:

Gensler voiced his concerns with passion and conviction, labeling the crypto industry as a hotbed for “hucksters, fraudsters, scam artists, and Ponzi schemes,” drawing parallels to the chaotic lack of federal securities laws in the 1920s. Gensler emphasized that most digital tokens should be classified as securities and fall under the purview of the SEC. He further asserted that crypto intermediaries must comply with securities laws, holding them accountable for investor protection.

The Call for Registration and Increased Oversight:

Gensler called for crypto asset providers to register with the SEC, stating that it is essential for safeguarding investors from potential pitfalls associated with collapsing crypto projects. He emphasized that by registering, these providers would be subject to rulebooks that prevent fraud and manipulation, ensure proper disclosures, protect customer assets, mitigate conflicts of interest, and undergo routine inspections by the SEC. Gensler’s message conveyed the importance of establishing a robust regulatory framework to maintain trust and integrity in the cryptocurrency market.

SEC Lawsuits against Binance and Coinbase:

In a notable move, the SEC filed multiple charges against Binance, one of the largest cryptocurrency exchanges, and its CEO, Changpeng Zhao. The regulator accused them of violating federal securities and investor protection laws. Similarly, Coinbase, another prominent exchange, faced accusations of operating as an unregistered securities exchange, broker, and clearing agency. These lawsuits signify the SEC’s commitment to enforcing existing regulations within the crypto industry and ensuring compliance from major players.

Gary Gensler’s recent speech reiterates the SEC’s strong position on the cryptocurrency industry, emphasizing the presence of criminal elements and the need for increased regulation. With a call for registration and increased oversight of crypto asset providers, Gensler aims to protect investors from potential risks associated with fraudulent activities and unstable projects. The SEC’s lawsuits against Binance and Coinbase further demonstrate the regulator’s determination to enforce securities laws and safeguard the interests of investors. As the crypto landscape continues to evolve, it is evident that regulatory bodies like the SEC play a crucial role in establishing a safer and more transparent environment for cryptocurrency investors.


Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.