{"id":16467,"date":"2023-01-15T02:11:12","date_gmt":"2023-01-15T02:11:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-chairman-warns-most-crypto-will-fail-says-dont-get-caught-up-in-fomo-fear-of-missing-out-regulation-bitcoin-news\/"},"modified":"2023-01-15T02:11:12","modified_gmt":"2023-01-15T02:11:12","slug":"sec-chairman-warns-most-crypto-will-fail-says-dont-get-caught-up-in-fomo-fear-of-missing-out-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-chairman-warns-most-crypto-will-fail-says-dont-get-caught-up-in-fomo-fear-of-missing-out-regulation-bitcoin-news\/","title":{"rendered":"SEC Chairman Warns Most Crypto Will Fail \u2014 Says ‘Don’t Get Caught up in FOMO, Fear of Missing Out’ \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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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 \u201cget caught up in the FOMO, the fear of missing out,\u201d emphasizing that crypto is a highly speculative, non-compliant asset class. <\/strong><\/p>\n

Gary Gensler Expects Most Crypto to Fail<\/h2>\n

SEC Chairman Gary Gensler gave some advice on cryptocurrency investing Wednesday during a Twitter spaces discussion hosted by the U.S. Army.<\/p>\n

Calling crypto a \u201chighly speculative, volatile asset class,\u201d Gensler stressed that most cryptocurrencies \u201care not complying with securities laws, but they should be.\u201d Noting that crypto is \u201cthe Wild West,\u201d he also questioned the use cases of most tokens.<\/p>\n

The SEC chief warned:<\/p>\n

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Most of these 10,000 or 15,000 tokens will fail.<\/p>\n<\/blockquote>\n

\u201cThat\u2019s because venture capital fails, new startups fail, but also because history tells us that there\u2019s not much room for micro currencies, meaning, you know, we have the U.S. dollar and Europe has the euro and the like,\u201d he explained.<\/p>\n

Emphasizing that crypto is \u201cnon-compliant generally,\u201d Gensler proceeded to advise investors:<\/p>\n

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Don\u2019t get caught up in the FOMO, the fear of missing out. Please don\u2019t get caught up in that.<\/p>\n<\/blockquote>\n

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<\/a> that a lot of crypto tokens will fail.<\/p>\n

The SEC chief has been criticized by lawmakers and industry participants for taking an enforcement-centric approach<\/a> to regulating the crypto industry. In November last year, Gensler affirmed that the securities regulator\u2019s enforcement division will remain focused on crypto<\/a>.<\/p>\n

This week, the SEC charged<\/a> two prominent crypto firms \u2014 Gemini and Genesis \u2014 \u201cfor the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.\u201d<\/p>\n

What do you think about SEC Chairman Gary Gensler\u2019s crypto warning and advice? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA 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.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: 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. Bitcoin.com<\/a> 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.<\/p>\n<\/div>\n

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