Crypto

SEC Chairman Warns Most Cryptos Will Fail – Says ‘Don’t Get Caught On FOMO, Fear You Miss Out’ – Regulation Bitcoin News

US Securities and Exchange Commission (SEC) Chairman Gary Gensler has warned that most crypto tokens will fail. He urged investors not to “get caught up in FOMO, the fear of missing out,” pointing out that crypto is a highly speculative and non-compliant asset class.

Gary Gensler expects most cryptos to fail

SEC Chairman Gary Gensler on Wednesday offered tips on investing in cryptocurrencies during a Twitter Spaces discussion hosted by the U.S. military.

Calling crypto a “highly speculative and volatile asset class,” Gensler pointed out that most cryptocurrencies “are not compliant with securities laws, but they should be.” Noting that crypto is “the Wild West,” he also questioned the use cases for most tokens.

The SEC chief warned:

Most of those 10,000 or 15,000 tokens will fail.

“It’s because venture capital fails, new startups fail, but also because history tells us there’s not a lot of room for microcurrencies, which means, you know, we have the US dollar and Europe has the euro and such,” he explained.

Emphasizing that crypto is “generally non-compliant,” Gensler then advised investors:

Don’t get caught up in FOMO, the fear of missing out. Please don’t get caught up in this.

This wasn’t the first time Gensler had warned about crypto tokens failing. In May of last year, following the collapse of the terra/luna ecosystem, it also warned that many crypto tokens will fail.

The SEC chief has come under fire from lawmakers and industry players for taking a law enforcement-centric approach to regulate the crypto industry. In November last year, Gensler claimed the securities regulator’s enforcement division would remain focused on crypto.

This week, the SEC accused two leading crypto companies – Gemini and Genesis – “for the unregistered offering and sale of securities to retail investors through the Gemini Earn crypto asset lending program.”

What do you think of SEC Chairman Gary Gensler’s crypto warning and advice? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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