Gary Gensler Criticizes Crypto Industry as He Prepares to Depart SEC

With only days left in his tenure as Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler made one last critique of the cryptocurrency space, stating that it remains "rife" with bad actors.

He acknowledged that Bitcoin, which represents 80% of the crypto market’s value, is widely recognized, but expressed concerns about the thousands of lesser-known projects that lack strong foundations.

Gensler pointed to the speculative nature of many of these projects, remarking that they were driven more by market sentiment than solid fundamentals.

He predicted that a large number of them would fail, likening them to high-risk venture capital investments. Additionally, he warned of the prevalence of “pump-and-dump” schemes within the crypto sector.

Reflecting on his time at the SEC, Gensler described his role as overseeing the $120 trillion capital market as a “great privilege.” He emphasized that while his efforts in regulating cryptocurrency had gained much attention, they represented only a small fraction—about 5%—of the SEC’s overall work.

Gensler also noted that his predecessor, Jay Clayton, had initiated 80 enforcement actions related to cryptocurrency during his term, underscoring the ongoing regulatory focus on the industry.