Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), claimed that there is a very significant risk in the crypto industry.
Gensler once again stated that many of the tokens are securities. Last month, Gensler stated that Bitcoin is a commodity, distinguishing it from other cryptocurrencies.
Gensler also remained silent about the state of Ethereum.
The SEC Chairman additionally said that crypto lenders can operate as investment firms.
Pointing out that lending companies promise “quite high returns”, Gensler said, “What’s behind these promises?” posed the question.
Gensler said the regulator will continue to focus on registering such lending companies in compliance with securities laws to protect the public.
Speaking to Bloomberg recently, Gensler said there was “too much mismatch” in the crypto industry.
