Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has said the cryptocurrency sector is full of scams and reminiscent of the stock market of the 1920s before regulation was introduced.
He has said:
"Hucksters. Fraudsters. Scam artists. Ponzi schemes. The public left in line at the bankruptcy court."
According to him, the rules of existing legislation are fully applicable to industry participants. The universal rules establish measures to protect investors, including disclosure, fraud prevention, manipulation, conflicts of interest, separation of funds and functions, and other requirements.
Gensler believes crypto companies are capable of complying with the established standards. This applies equally to centralized intermediaries such as exchanges and DeFi service providers such as staking.