SEC Chair Gensler Calls Crypto A 'Field Rife With Fraud, Abuse And Misconduct'

U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler on Wednesday voiced significant concerns regarding the cryptocurrency sector's integrity, suggesting the industry is currently fraught with "fraud, abuse, and misconduct."

As these concerns come to the forefront, the crypto community turns its attention to events such as Benzinga's Future of Digital Assets conference on Nov. 14. This conference, which will delve into the pressing challenges and future of digital assets, is expected to discuss Gensler's remarks extensively, given their timely relevance.

Testifying before the Senate Banking, Housing and Urban Affairs Committee, Gensler said, "If they were to live up to the investor protection built into their current laws, it would help investors. But right now, unfortunately, there is significant non-compliance and it's a field which is rife with fraud, abuse, and misconduct."

Not directly answering a query on the filing of applications for a spot Bitcoin ETF, Gensler said there have been several applications filed with the regulatory body and that it was scrutinizing them.

Also Read: Altcoin Market Braces For FTX's $3.4B Crypto Offload Through 2023

Recently, the SEC leveled multiple charges against leading cryptocurrency exchanges, Coinbase Global Inc. COIN and Binance BNB/USD, citing violations of U.S. securities regulations.

In response, U.S. Rep. Warren Davidson (R-Ohio) made a notable move by proposing a bill seeking to reform the SEC and remove Gensler.

Davidson labeled Gensler a "despotic chairman," emphasizing the importance of protecting the markets from the nation's chief financial overseer.

Read Next: Binance Steps Up: $3M In BNB Donated To Earthquake-Hit Morocco

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event - Future of Digital Assets. Tickets are flying: Get yours! 

Photo: Third Way ThinkTank via Flickr Creative Commons