Former SEC chairman Gary Gensler warns of an impending shake-up in the crypto market amidst challenging times. Emphasizing a lack of transparency and the significant influence of emotions, he highlights crucial issues impacting the industry. Stay tuned for more insights!
Mis à jour le 01/09/2025 à 19:44
Gary Gensler doesn’t mince words when describing the crypto market as “more influenced by sentiment than fundamentals.” This statement, made in an interview with Bloomberg, indeed highlights what he sees as a structural weakness of the sector.
He believes that many altcoins are destined to disappear. In this regard, he warns:
“Investors need to understand that the majority of blockchain projects lack a viable economic model.”
He argues that crypto tokens are often launched without sufficient information for users, creating an environment conducive to speculation and manipulation.
With often opaque projects and a lack of adequate disclosures, Gensler believes that the crypto market remains vulnerable to fraud and abuse. He contends that this reality echoes the questionable practices of financial markets in the 1920s.
Under the leadership of Gary Gensler, the SEC has stepped up efforts to regulate the digital asset sector. The 100+ lawsuits filed are evidence of this. This number exceeds the 80 cases handled by his predecessor, Jay Clayton, indicating a clear intent to toughen stance on crypto intermediaries.
Leading cryptocurrency exchanges like Binance and Coinbase have been at the forefront of this crackdown, accused of operating as unregistered securities exchanges.
An emblematic case is the ongoing lawsuit against Ripple Labs. The SEC accuses the crypto firm of selling XRP tokens as unregistered securities, a case that could redefine the classification of altcoins in the U.S.
Gary Gensler consistently denounces fraudulent practices and market manipulation in the crypto industry. According to him, the bankruptcy of FTX and dubious projects are indicative of a lack of oversight.
In 2022, the market witnessed massive losses, major bankruptcies, and billions of euros’ worth of assets disappearing. Gensler believes that strict regulation mandating crypto companies to adhere to securities laws is the only solution.
With Gensler’s departure, Paul Atkins will assume control of the SEC. This appointment could signify a turning point for the digital asset sector, especially as Atkins is known for his pro-innovation stance.
Atkins is a staunch advocate of balanced regulations. He has reiterated that regulations should foster innovation, not stifle it. His involvement in organizations like the Token Alliance and the Digital Chamber of Commerce underscores his support for blockchain projects.
Observers anticipate a reduction in legal actions against crypto companies. This approach could:
Stay tuned for more updates…
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