On the back of a meltdown in crypto markets last week, Securities and Exchange Commission Chairman Gary Gensler sent a stern warning to the investing public on crypto, calling it a “highly speculative asset class” and reiterating its lack of investor protections, YahooFinance.com reported. During an appearance at a FINRA conference in Washington, D.C., yesterday, Gensler opined that the investing public isn’t getting full and fair disclosures and that cryptocurrencies should be regulated as securities. “The investment public is not getting disclosures…. When you make other asset purchases, we have this basic bargain, you the investing public can make your choices about what risks you take,” Gensler said. “There's supposed to be full and fair disclosure, and people aren't supposed to lie to you. Right now, many of these entrepreneurs come up with an idea … and they want to raise money from you. That puts it inside of the securities laws.” Gensler warned that investors should not think they own their crypto tokens, noting that using a digital wallet on a platform constitutes a transfer of ownership to the platform. “If the platform goes down, guess what? You just have a counter-party relationship with the platform," Gensler said. "Get in line at bankruptcy court."
