SEC Chairman Warns Most Crypto Will Fail — Says ‘Don’t Get Caught up in FOMO, Fear of Missing Out’ – Regulation Bitcoin News

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned that most crypto tokens will fail. He has urged investors not to “get caught up in the FOMO, the fear of missing out,” emphasizing that crypto is a highly speculative, non-compliant asset class.

Gary Gensler Expects Most Crypto to Fail

SEC Chairman Gary Gensler gave some advice on cryptocurrency investing Wednesday during a Twitter spaces discussion hosted by the U.S. Army.

How To Get Free Crypto  

Calling crypto a “highly speculative, volatile asset class,” Gensler stressed that most cryptocurrencies “are not complying with securities laws, but they should be.” Noting that crypto is “the Wild West,” he also questioned the use cases of most tokens.

The SEC chief warned:

Most of these 10,000 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 U.S. dollar and Europe has the euro and the like,” he explained.

Emphasizing that crypto is “non-compliant generally,” Gensler proceeded to advise investors:

Don’t get caught up in the FOMO, the fear of missing out. Please don’t get caught up in that.

This was not the first time Gensler has cautioned about crypto tokens failing. In May last year, following the collapse of the terra/luna ecosystem, he similarly warned that a lot of crypto tokens will fail.

The SEC chief has been criticized by lawmakers and industry participants for taking an enforcement-centric approach to regulating the crypto industry. In November last year, Gensler affirmed that the securities regulator’s enforcement division will remain focused on crypto.

Coinbase Banner  

This week, the SEC charged two prominent crypto firms — Gemini and Genesis — “for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.”

Tags in this story

What do you think about SEC Chairman Gary Gensler’s crypto warning and advice? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

FreeBitcoin Banner  

Read disclaimer

Go to Source
Author: Kevin Helms

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.