Gary Gensler Lashes Out At Whole Industry—Threatens Widespread Action

December 27, 2022 12:13 pm Comments

Gary Gensler is promising a widespread ‘crackdown’ on the entire crypto industry…

The head of the SEC has been lambasted and is currently facing heat for failing to recognize the warning signs that FTX was essentially a Ponzi scheme.

Numerous secret meetings between Gensler and FTX have also come under increased scrutiny.

In what is no doubt a knee-jerk response to being in the hot seat for his role in the collapse of FTX, Gary Gensler is promising widespread crackdowns for the entire crypto industry and the broader market of digital assets.

Whether or not this will materialize remains to be seen. He also wasn’t clear or precise with what the purported crackdown will entail, as no specific assets or regulatory initiatives were mentioned…

However, Gensler did say that proof of reserves auditing was not sufficient for the industry and that he would like to see standard accounting methods adopted by crypto firms.

Here’s what we currently know:

Bloomberg reports:

The US Securities and Exchange Commission is just getting started with its crackdown on crypto firms that refuse to abide by its rules.

SEC Chair Gary Gensler said in an interview on Thursday that the agency’s patience is wearing thin for digital-asset exchanges and other firms that shirk its regulations.

Just hours earlier, the watchdog – which had already filed a lawsuit against FTX co-founder Sam Bankman-Fried — sued two more prominent crypto executives for their alleged roles in the collapse of the digital-asset exchange.

Daily Hodl quoted Gensler:

“Proof of reserves is neither a full accounting of the assets and liability of a company, nor does it satisfy segregation of customer funds under the securities laws.”

“There are some in this field that have talked about ways to give customers confidence that their crypto is really there. They should do that by coming into compliance with time-tested custody, segregation of customer funds rules and accounting rules.”

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.