Gensler Says SEC Has More Work to Do on Crypto Regulation

(Bloomberg) — Gary Gensler, the outgoing chair of the Securities and Exchange Commission, believes there’s more still to be done in regulating altcoins and intermediaries within the digital assets market.

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On a regular basis investors still don’t receive adequate disclosures or information from digital asset firms, Gensler said Wednesday during an interview on Bloomberg Television.

The previous Goldman Sachs executive’s tenure as a top Wall Street cop has been marked by vigorous enforcement efforts against many cryptocurrency players, from outright fraudsters to firms like Coinbase Global Inc. and proprietary trading firm DRW Holdings.

Gensler announced in November his plans to step down as chairman of the agency on Jan. 20, when President-elect Donald Trump is about to be sworn into office. Trump has nominated Paul Atkins, a former SEC commissioner, to steer the agency. He is predicted to significantly pare down enforcement actions against digital asset firms and take a positive view of the digital asset industry.

Gensler noted that his predecessor, Jay Clayton, who led the agency through the first Trump administration, led to 80 crypto-related enforcement cases, while the agency led to 100 during his tenure. But while the SEC under Clayton cracked down on firms that were issuing tokens the agency deemed to be securities, Gensler’s focus has often been on market intermediaries flouting compliance with securities laws for registration and disclosure.

The SEC has notched several court wins, in addition to losses, on its position that firms are eschewing registration and disclosure requirements under Gensler’s leadership.

“I’ve never seen a field that’s a lot wrapped up in sentiment and never a lot about fundamentals,” Gensler said, adding he believes a lot of these crypto projects is not going to survive.

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