SEC chairman warns that most of the crypto will fail-says: Don't let FOMO catch yourself for fear of missing something-regulation

The chairman of the US Securities and Exchange Commission (Sec), Gary Gensler, has warned that most crypto tokens will fail. He asked investors not to be "involved in the Fomo, the fear of missing something", and emphasizes that crypto is a highly speculative, non -compliant investment class.

Gary Gensler expects most cryptos to fail

Sec chairman Gary Gensler gave some advice on cryptocurrency investments on Wednesday during a Twitter spaces discussion organized by the US Army.

Gensler called crypto a "highly speculative, volatile investment class" and emphasized that most cryptocurrencies "do not correspond to the laws of securities, but they should be". He found that crypto is "the wild west" and also questioned the applications of most tokens.

The SEC boss warned:

Most of these 10,000 or 15,000 tokens will fail.

"This is because venture capital fails, new start-ups fail, but also because the story tells us that there is not much space for microwrowasse, which means, you know, we have the US dollar and Europe has the euro and the like," he explained.

Gensler emphasized that crypto was "generally not compliant", and further advised investors:

don't let the Fomo capture you, fear of missing something. Please do not let yourself go.

This was not the first time that Gensler warned of the failure of crypto tokens. In May last year, after the collapse of the Terra/Luna-Ecosystem, he was similar to that many crypto tokens will fail.

The SEC boss was criticized by legislators and industry participants focuses on crypto .

This week has the sec Calculated two prominent crypto--gemini and Genesis-"For the non-registered offer and the sale of securities to small investors through the crypto assets program Gemini Earn".

What do you think of the crypto warning and the advice of the second chairman Gary Gensler? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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