There is still more work to be done in terms of regulating alternative cryptocurrencies and intermediaries in the digital asset market, according to Gary Gensler, who is stepping down as head of the Securities and Exchange Commission.
In an interview that took place on Bloomberg Television on Wednesday, Gensler said that individuals who invest in digital assets do not get sufficient disclosures or information from companies that deal in digital assets.
The tenure of the former executive at Goldman Sachs as a senior Wall Street detective has been defined by robust enforcement actions against a wide variety of cryptocurrency participants.
These efforts have included corporations such as Coinbase Global Inc. and proprietary trading company DRW Holdings, as well as blatant fraudsters related to cryptocurrencies.
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Gensler made the announcement in November that he intended to depart from his position as chairman of the agency on January 20, which is the day that President-elect Donald Trump is scheduled to take the oath of office.
Paul Atkins, a former commissioner of the Securities and Exchange Commission, has been proposed by Trump to head the agency.
As a result of his friendly attitude toward the digital asset market, it is anticipated that he would drastically reduce the number of enforcement actions taken against organizations that deal in digital assets.
Gensler made the observation that his predecessor, Jay Clayton, who commanded the agency during the first administration of Donald Trump, brought out around 80 cases connected to crypto-related enforcement, while the agency brought out approximately 100 cases during his time.
But whereas the Securities and Exchange Commission (SEC) under Clayton was cracking down on corporations that were selling tokens that the agency considered to be securities, Gensler’s emphasis has often been on market intermediaries that are not complying with securities regulations for registration and disclosure.
For its argument that firms are avoiding registration and disclosure obligations while Gensler is in charge, the Securities and Exchange Commission (SEC) has amassed a number of victories in the courts, as well as a number of defeats.
Gensler said, “I’ve never seen a field that’s so much wrapped up in sentiment and not so much about fundamentals,” and he went on to elaborate that he feels a significant number of these cryptocurrency businesses would not be successful.