{"id":14416,"date":"2022-11-11T08:59:10","date_gmt":"2022-11-11T08:59:10","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/gensler-says-crypto-investors-are-getting-hurt\/"},"modified":"2022-11-11T08:59:10","modified_gmt":"2022-11-11T08:59:10","slug":"gensler-says-crypto-investors-are-getting-hurt","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/gensler-says-crypto-investors-are-getting-hurt\/","title":{"rendered":"Gensler says crypto investors are getting hurt"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC) says lack of disclosure and too much leverage are two factors hurting the crypto industry.<\/p>\n

The SEC Chair\u2019s comments<\/a> on Thursday come at a time when the crypto sector is firmly in the spotlight again. This time, it\u2019s the shock of what has happened with the FTX crypto exchange.<\/p>\n

As CoinJourna<\/em>l reported<\/a> earlier today, FTX is insolvent and this just added the inreased regulatory attention and overall rage around the crypto community.<\/p>\n

Leverage and no disclosure is a \u2018toxic mix\u2019<\/h2>\n

As has been reported widely, FTX\u2019s implosion is down to Alameda Research\u2019s blowing billions in trading, and leaving FTX with an $8 billion hole. That money belonged to FTX customers.<\/p>\n

\u201cWhen you mix together a bunch of customer money and borrowing against it, investors get hurt<\/em>,\u201d Gensler told Andrew Ross Sorkin on CNBC\u2019s \u2018Squawk Box\u2019.<\/p>\n

He added<\/a>: \u201cThis is a very interconnected world in crypto with a few concentrated players. When markets turned on them it appears that a lot of customers lost money<\/em>.\u201d<\/p>\n

Gensler has previously called on crypto exchanges and other providers to embrace regulation as well as offer more disclosures to better protect investors.<\/p>\n

\u201cIt\u2019s a field that\u2019s significantly non-compliant, but it\u2019s got regulation<\/em>,\u201d the SEC Chair said, pointing out that crypto investors from all over the world are getting rekt. And other than leverage, consumers are falling prey to promotions from celebrities and there isn\u2019t much disclosure.<\/p>\n

\u201cThis is not like the NYSE or Nasdaq. These platforms co-mingle. It\u2019s a toxic combination where they take people\u2019s money, they borrow against it. But not much disclosure, and then they trade against their customers<\/em>,\u201d \u201dhe regulator explained.<\/p>\n

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