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.
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.