U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler took his crypto-critical message to the web again with a new investor-protection video Thursday cautioning people about digital assets businesses that are breaking securities laws.
As the industry wrestles with enforcement actions and court challenges involving the SEC – a major topic at the Consensus 2023 event this week in Austin, Texas – the agency chief reiterated his longstanding position that crypto platforms are operating illegally.
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“The lack of compliance by these crypto platforms means that you don't have basic investor protections,” Gensler said in his “Office Hours” video series. “These are things like rulebooks and surveillance to prevent fraud and manipulation. Or appropriate custody and segregation of customer assets so they don't get misused or abused or simply become the property of the platform, especially if it goes into bankruptcy.”
Gensler has said he’ll hold the industry to existing securities laws, so the courts and the U.S. Congress may be the only impediment to his mission. Congressional committees are examining crypto market structure at two hearings on Thursday.
Edited by James Rubin.
