The recent speech by Gary Gensler, Chair of the SEC, at the 2023 Securities Enforcement Forum has sparked a conversation within the crypto community. Gensler mentioned that the SEC has taken action against individuals in the crypto market, referring to it as a “highly noncompliant field.”
Gensler also provided insights into the SEC’s enforcement actions, revealing that over 780 actions were filed in 2023, resulting in judgments and orders totaling $5 billion. Of this amount, $930 million was distributed to harmed investors. The SEC has also pursued lawsuits against 40 firms, issuing penalties of over $1.5 billion.
During his speech, Gensler reiterated his belief that most cryptocurrencies should be considered securities and regulated as such. He explained that the concept of an “investment contract” applies to many crypto assets, making them subject to securities laws.
Gensler drew parallels between the current state of the crypto market and the financial landscape of the 1920s, which suffered from a lack of clear regulations. He argued that stricter regulations are necessary to prevent scams, fraud, and bankruptcies within the crypto ecosystem.
While Gensler’s criticism of the crypto market is not new, there have been calls from the crypto community, businesses, and Congress members for more clarity on crypto regulations.
In a separate discussion on decentralized social media, Ryan Li, co-founder of CyberConnect, explained the benefits of Web3 social media platforms. Li highlighted that these platforms offer content creators the confidence that they won’t be abandoned when the platform grows or shifts focus to ad revenue. He also mentioned recent updates in the decentralized social media sector, such as new ways to increase engagement on SocialFi platforms.
One platform gaining attention is Friend.tech, which has become the most used decentralized application on Coinbase’s Base network. Despite its growth, the platform has faced criticism, with Li describing it as a security due to its trading mechanism.
Owusu Akyaw and Li also discussed how recent changes at major platforms like Meta and X (formerly Twitter) may impact adoption of Web3 social media. Li suggested that users are likely to switch platforms based on a favorite feature and then stay due to the platform’s infrastructure.
Overall, Gensler’s speech and the discussion on decentralized social media highlight the ongoing debates and developments within the crypto and Web3 industries.