The Securities and Exchange Commission (SEC) has started an initiative with the national army to provide financial advice in the United States.
Gary Gensler, Chairman of the SEC, has often appeared to be a crypto critic. Recently, Gensler took to Twitter to launch another bashing manifest against the crypto industry. He pointed out that an increasing number of US soldiers have shown interest in favor of the digital assets sector and advised them to refrain from investing in cryptocurrencies.
Gensler opines that the sector lacks proper regulation and that most digital assets will collapse in the future. Further, he claimed that the niche looks like the “Wild West” due to its unregulated nature, so people should not interact with it.
According to the Chairman, most of the existing cryptocurrencies will crash at some point, bearing painful losses to the investors. He stated:
“Most of these 10 or 15,000 tokens will fail. That’s because venture capital fails, new startups fail – but also because history tells us that there’s not much room for micro currencies, meaning, you know, we have the US dollar and Europe has the euro and the like.”
Gensler said that the soldiers should not be getting caught up in the FOMO- the fear of missing out,” as these Bitcoin and the alternative coins are “non-compliant” and “highly speculative.”
The discussion also witnessed SEC commissioner Caroline Crenshaw pouring in her views, stating that cryptocurrencies are well-known for being involved in fraudulent schemes. She opined that blockchain is partly transparent, and the part that is not transparent has caused the recent unrest.
“They claim to be transparent; what’s on the blockchain is transparent, but the rest of what’s there is not transparent, and I think there have been some examples of that recently.”
However, despite the criticism of the crypto industry, the commission has also displayed some positive stances over the past years. The organization has decided not to follow China’s example and ban everything related to digital assets.
In July, when SEC Chairman Gary Gensler was asked in an interview if the SEC can be expected on a “crypto regulatory front” in the coming months. It has been months since the SEC said it would develop a national policy to regulate crypto.