Crypto ‘Wild West’ Hurts Investors, SEC Chair Says: Bankruptcy Court Queues Are Crowded
By Benzinga
U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler says widespread noncompliance among cryptocurrency companies is costing investors.
What Happened: "There is a lot of noncompliance," Gensler emphasized in a recent interview with CNBC. "This is really the Wild West."
Gensler explained that companies aren't in adherence to securities laws designed to protect investors from fraud and manipulation.
The trend isn't exclusive to the U.S., he added, but rather a pervasive trend across the global crypto sphere.
"When so many people have been hurt," Gensler stated, "all they can do is then stand in line at a bankruptcy court."
Also Read: Argentina Confirms Crypto Milestone, OKs Bitcoin-Denominated Financial Contracts
This widespread noncompliance poses a significant challenge for investors
who are left holding the bag in bankruptcy court queues, Gensler explained.
It also hurts legitimate players within the industry.
"It's hard for the good faith actors even to compete," Gensler explained, highlighting the unfair disadvantage ethical businesses face due to the rampant lawlessness surrounding them.
The path to achieving this potential, he argues, lies in prioritizing compliance and creating a fair and trustworthy ecosystem for all participants.
Image: Shutterstock
