US Securities and Exchange Commission (SEC) Chairman Gary Gensler has warned that most crypto tokens will fail. He urged investors not to “Get caught up in FOMO, the fear of missing out“, pointing out that crypto is a highly speculative and non-compliant asset class.
Gary Gensler doesn’t expect most crypto-currencies to fail.
SEC Chairman Gary Gensler offered some advice on investing in crypto-currencies Wednesday at a Twitter space discussion hosted by the U.S. military.
Calling crypto-currencies “highly speculative and volatile asset class“, Gary Gensler pointed out that most crypto-currencies “are not securities law compliant, but they should be“. Noting that crypto is “the wild west“, he also questioned the use cases for most of the tokens.
The SEC chief warned:
Most of those 10,000 or 15,000 chips will fail.
” It’s because venture capital fails, new startups fail, but also because history tells us that’there isn&t much room for micro-currencies, that is, you know, we have the U.S. dollar and’Europe has the euro and other ” he explained.
Stressing that crypto-currencies are “generally non-compliant“, Gary Gensler went on to advise investors:
Don’t get caught up in FOMO, the fear of missing out. Don’t get caught up in it.
This is not the first time Gary Gensler has warned about the failure of crypto-currencies. In May of last year, in the wake of the terra/luna ecosystem collapse, he also warned of the failure of many crypto-currencies.
The SEC chief has been criticized by lawmakers and industry participants for taking a law enforcement-centric approach to regulating the crypto industry. In November of last year, Gary Gensler said the securities regulator’s enforcement division will remain focused on crypto.
This week, the SEC charged two leading crypto companies – Gemini and Genesis – “for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.“