Gary Gensler, the chairman of the SEC, stated that improved investor protection is required in light of the consequences of the collapse of FTX, the major cryptocurrency exchange.
Speaking for CNBC, Gensler emphasized, “I think investors need better protection in this space,” as he went on to say that “this is a field that is significantly non compliant, but it’s got regulations and those regulations are often very clear.”
“Beware this is highly speculative, it is regulated, but without prejudging anyone’s circumstance, largely non compliant,” noted Gensler, as he said that the rope is getting shorter and shorter. He additionally explained that “When you give somebody your token and they go down, you are going to just stand in line in a bankruptcy court and they may be taking your token and doing all sorts of things without proper disclosure.”