SEC Chairman Gary Gensler has never been a fan of cryptocurrencies. Over and over again he has spoken out about the same thing. talk on twitter space session Hosted by the U.S. military late Wednesday, Gensler reaffirmed his skepticism.
Gensler said the crypto industry is in the “Wild West” era. The SEC chairman has called on traders and businesses to exercise caution as most cryptocurrencies are now “non-compliant” and non-compliant with the law.
“Most of these do not comply with securities laws, but they should.”
Further explaining why most tokens fail, Gensler said:
“Most of those 10 or 15,000 tokens will fail because venture capital will fail, new startups will fail, and also because history shows there isn’t much room for microcurrencies. So we have the US dollar, Europe has the euro and so on.”
Gensler warns against FOMO
Gensler also warned listeners to stay off the market. He argued that it’s very easy to fall prey to “fear of missing out.”
“Don’t get caught up in it [FOMO]This is highly speculative. ”
“Altcoin FOMO” is currently taking off in the market amid rising asset prices. As highlighted in a recent article, the crypto media has started flooding tweets and mentions with terms like “altcoins” and “altcoin season.”
However, this serves as a precautionary warning. Traditionally, the crowd tries to FOMO in whenever asset prices rise. The result is usually top formation and derailment. Then the conditions are reversed only when the crowd begins to doubt.
The crypto market has depreciated significantly over the past year. The market capitalization he has over $3 trillion has now dwindled to $890 billion. Nonetheless, it has recorded a modest recovery of 4.1% over the past day as prices of most top assets have risen.