[ad_1]
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has warned that most cryptocurrencies will fail. He urged investors not to get caught up in “FOMO, the fear of missing out,” emphasizing that crypto is a highly speculative and non-regulated asset class.
Gary Gensler Expects Most Cryptos to Fail
SEC Chairman Gary Gensler gave some advice on investing in cryptocurrencies during a discussion in a Twitter space hosted by the U.S. military on Wednesday.
Gensler called cryptocurrencies a “highly speculative and volatile asset class,” stressing that most cryptocurrencies “are not compliant with securities laws, but should be.” He called cryptocurrencies the “Wild West” and questioned the use cases of most tokens.
The SEC Commissioner warned:
Most of those 10,000 or 15,000 tokens will fail.
“That’s because venture capital fails, new startups fail, and also because history has shown there isn’t much room for microcurrencies. So we have the US dollar and Europe has We have the euro and so on,” he explained.
Gensler emphasized that cryptocurrencies are “generally non-compliant” and advised investors:
FOMO, don’t get caught up in the fear of missing out. Don’t get caught up in it.
This isn’t the first time Gensler has warned about cryptographic token failures. Last May, he warned that many crypto tokens would fail as well, following the collapse of the terra/luna ecosystem.
The SEC Commissioner has been criticized by lawmakers and industry insiders for taking an enforcement-centric approach to regulating the cryptocurrency industry. Last November, Gensler confirmed that the securities regulator’s enforcement arm would continue to focus on crypto.
This week, the SEC charged two prominent cryptocurrency companies — Gemini and Genesis — for “offering and selling unregistered securities to retail investors through the Gemini Earn crypto asset lending program.”
What are your thoughts on SEC Chairman Gary Gensler’s warnings and advice on cryptocurrencies? Let us know in the comments section below.
image credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. NEITHER THE COMPANY NOR THE AUTHOR WILL BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY DAMAGE OR LOSS ARISING OR ALLEGED TO OCCUR ARISING OUT OF OR RELATING TO YOUR USE OF OR RELIANCE ON ANY CONTENT, PRODUCTS, OR SERVICES DESCRIBED IN THIS ARTICLE. We are not responsible.
[ad_2]
Source link
