US Securities and Exchange Commission (SEC) chairman Gary Gensler has described cryptocurrency as “rife with fraud, scams, and abuse in certain applications” and called for more government regulation to protect investors in the assets.
Speaking at the Aspen Security Forum, an annual three-day conference in Aspen, Colorado, Gensler accepted that cryptocurrency “has been and could continue to be a catalyst for change in the fields of finance and money,” but warned it remains “highly speculative” and used as a medium of exchange mostly in situations when users wish to launder money, evade sanctions and/or tax, or enable extortion.
He also worried that cryptocurrencies are treated as investments, but lack investor protections.
“Right now, we just don’t have enough investor protection in crypto. Frankly, at this time, it’s more like the Wild West,” said Gensler, later adding: