SEC Chairman Warns Most Crypto Will Fail — Says ‘Don’t Get Caught up in FOMO, Fear of Missing Out’
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned that most crypto tokens will fail. He has urged investors not to “get caught up in the FOMO, the fear of missing out,” emphasizing that crypto is a highly speculative, non-compliant asset class.
Gary Gensler Expects Most Crypto to Fail
SEC Chairman Gary Gensler gave some advice on cryptocurrency investing Wednesday during a Twitter spaces discussion hosted by the U.S. Army.
Calling crypto a “highly speculative, volatile asset class,” Gensler stressed that most cryptocurrencies “are not complying with securities laws, but they should be.” Noting that crypto is “the Wild West,” he also questioned the use cases of most tokens.
The SEC chief warned:
Most of these 10,000 or 15,000 tokens will fail.
“That’s because venture capital fails, new startups fail, but also because history tells us that there’s not much room for micro currencies, meaning, you know, we have the U.S. dollar and Europe has the euro and the like,” he explained.
Emphasizing that crypto is “non-compliant generally,” Gensler proceeded to advise investors:
Don’t get caught up in the FOMO, the fear of missing out. Please don’t get caught up in that.
This was not the first time Gensler has cautioned about crypto tokens failing. In May last year, following the collapse of the terra/luna ecosystem, he similarly warned that a lot of crypto tokens will fail.
The SEC chief has been criticized by lawmakers and industry participants for taking an enforcement-centric approach to regulating the crypto industry. In November last year, Gensler affirmed that the securities regulator’s enforcement division will remain focused on crypto.
This week, the SEC charged two prominent crypto firms — Gemini and Genesis — “for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.”
Tags in this story crypto tokens fail, most crypto tokens will fail, SEC Chair Gary Gensler crypto warning, SEC crypto failing, SEC crypto warning
What do you think about SEC Chairman Gary Gensler’s crypto warning and advice? Let us know in the comments section below.
El Salvador Approves Digital Assets Issuance Law REGULATION | 17 hours ago SEC Charges Genesis and Gemini — Winklevoss Says Regulator’s Lawsuit Is ‘Super Lame’ REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons
Polygon Announces Upcoming Hard Fork to Address Gas Spikes and Chain Reorganizations
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Read disclaimerShow comments
More Popular News
In Case You Missed It
NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales
Non-fungible token (NFT) sales saw a small uptick over the last week as $658.4 million in NFT sales were recorded, up 3.35% in seven days. Out of 15 blockchains, Polygon-based NFT sales saw the largest increase in volume, jumping 106.68% … read more.
Fed’s Bullard Wants to Raise Bank Rate to 3.5% by Year’s End, Hints at 75 Basis Point Rate Hike Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design