Gary Gensler, the SEC Chair, has again expressed concerns about the risks associated with the cryptocurrency industry, noting that many investors have suffered due to lack of information about their investments.

Gensler's Remarks on Cryptocurrency Risks

Gensler highlighted that many investors have suffered significant losses and ended up in bankruptcy cases, underscoring the risks of investing. He identified the lack of disclosure in the crypto industry as a major problem that harms investor perception of capital markets.

SEC's Protection and Legal Adaptation

Gensler explained how the agency needs to adapt in light of the courts' interpretation of securities laws, explaining that the SEC works within the law. He emphasized that people should be allowed to make their investment decisions on their own but need protection from inaccurate or incomplete information.

Bitcoin's 16th Anniversary

Gensler also mentioned Bitcoin’s 16th anniversary, linking it to the release of the white paper by the anonymous developer Satoshi Nakamoto in 2008. The first record of a Bitcoin transaction is dated January 3, 2009. Gensler noted Bitcoin is regarded as a commodity, not a security, unlike other crypto assets.

Gary Gensler emphasized the importance of protecting investors from inaccurate information in the crypto industry and noted the need for the SEC to continue adapting to changing legislation.