- SEC Chair Gary Gensler said there are multiple bad actors in crypto beyond just Sam Bankman-Fried and FTX. This comes after Bankman-Fried’s criminal trial ended in a guilty verdict.
- Gensler questioned the use cases for the thousands of cryptocurrency tokens and said investors need to understand each token’s utility. He has repeatedly warned about crypto’s lack of compliance.
- The SEC brought 760 enforcement actions in 2022 and expanded its crypto unit, but is still limited by resources. Gensler said the SEC prioritizes high impact cases and gatekeepers.
The collapse of FTX has brought renewed scrutiny to fraud and misconduct in the crypto industry. SEC Chair Gary Gensler said there are multiple bad actors in crypto, not just Sam Bankman-Fried. This comes after Bankman-Fried’s criminal trial ended with him being found guilty on all counts. The SEC has been ramping up enforcement actions against crypto firms and individuals.
Gensler on Crypto Use Cases and Investor Protection
Gensler questioned the use cases for cryptocurrencies. With over 15,000 to 20,000 tokens, he asked what are the specific use cases. He said investors need to understand the utility of each individual token. Gensler has repeatedly warned about crypto’s lack of compliance and called for registration with the SEC.
SEC Enforcement Actions and Resources
When asked how the SEC decides which enforcement actions to pursue, Gensler cited limited resources. With many complaints and bad actors, the SEC prioritizes accountability, high-impact cases, and gatekeepers. In 2022, the SEC brought 760 enforcement actions and expanded its crypto unit. Fiscal year 2023 numbers may come soon.
