SEC Chairman Gary Gensler explained the ongoing market crisis caused by the impact of FTX in an interview with CNBC. squawk box.
Gensler, who has been pushing for tighter regulation and targeting various cryptocurrency companies for fraudulent activities in the United States, said the field needs better regulation and better enforcement.
He explained that while U.S. law is clear, the industry is “significantly non-compliant.” The SEC has led dozens of enforcement actions against various cryptocurrency companies operating in the United States, targeting influencers promoting unregistered cryptocurrencies and the companies that issued them.
However, Gensler told CNBC’s Andrew Sorkin that he believes the best way to protect investors is to continue working with cryptocurrency exchanges to register. he added:
“The runway is gone. Investors in the US and around the world are taking a hit.”
Gensler also covered it at a conference with FTX’s Sam Bankman-Fried in March of this year. When asked if he had been duped by the exchange, Gensler said he had met with representatives from various industries over the years and shared the same message with all of them.
“We sent the same message to the masses and we sent the same message to them: non-compliance doesn’t work.”
— Squawk Box (@SquawkCNBC) November 10, 2022
Gensler said the toxic combination that threatens the industry is the fact that big companies are “mingling together” and working together against their customers.
“It’s not like the New York Stock Exchange or the Nasdaq. It’s a mix of these platforms. They take people’s money, they owe money on it, they don’t disclose a lot of information, they trade with their customers.” It’s a toxic combination.”