SEC Chair Gary Gensler made the remark on a Bloomberg TV interview.

During a recent interview with Bloomberg TV, Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC), said the cryptocurrency sector was speculative and plagued by fraudulent activities.

While discussing the ongoing debates surrounding regulatory oversight for this sector, Gensler emphasized the lack of adequate protections for investors. He pointed out that many operators in the crypto space are engaging in fraudulent practices and are not compliant with regulations.

“This is a field rife with fraud, rife with hucksters. And there are good faith actors as well, but there are far too many that aren’t,” he said.

Gensler warned investors against assuming they are fully protected by securities laws when dealing with cryptocurrencies. Despite some tokens being subject to these laws, he cautioned that the level of protection might not be sufficient.

He urged investors to exercise caution, considering the highly speculative nature of the asset class.

Addressing the operations of crypto exchanges, Gensler pointed out that they are violating laws that traditional exchanges, like the New York Stock Exchange or NASDAQ, adhere to. He worried that investors are not receiving the same level of fair and transparent disclosure that they would typically expect from conventional exchanges.

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