In an appearance on CNBC, SEC Chairman Gary Gensler said he believes there is a disproportionate amount of scams, fraud, and media attention in crypto compared to its market cap. He believes that the attention given to the SEC's crypto enforcement is a function of the fact that that's where the media's attention is and that he is frequently asked about crypto by financial media. Gensler did not comment on recent Wells notices or lawsuits facing Robinhood, Consensys, and others.

SEC Chair Gary Gensler has criticized the Financial Innovation and Technology for the 21st Century Act (FIT21), arguing that it would create regulatory gaps and reduce the oversight of crypto assets as securities, thus jeopardizing investor protection.

The SEC has criticized Coinbase for excessively subpoenaing documents, including emails from Gary Gensler, labeling the demand as unnecessary and irrelevant to the case. It claims that it has already provided over 240,000 documents and that meeting Coinbase's request for millions more would involve an impractical review of potentially privileged communications, far exceeding the actual case requirements.

According to Senate staffer rumors, Kamala Harris is considering making anti-crypto SEC Chair Gary Gensler the Treasury Secretary under her administration. Republican Senate staffers and politicians are against this nomination, and Democrats are split around crypto support. There has been no official statement from the Harris campaign.

In a recent interview with CNBC's Squawk Box, SEC Chair Gary Gensler emphasized the urgent need for investor protections within the cryptocurrency industry. He warned that without these safeguards, the sector is unlikely to endure. Gensler pointed to the significant turmoil experienced in the crypto market over the past few years, highlighting the collapse of major firms such as FTX, Three Arrows Capital, and Celsius. He noted that many prominent figures in the industry have faced legal consequences, including FTX's Sam Bankman-Fried, who was sentenced to nearly 25 years in prison for fraud. Gensler's comments reflect a broader concern about the lack of trust and accountability in the crypto space, which has seen tens of billions of dollars lost due to bankruptcies and mismanagement. He stated, "What innovative field in America survives without having building trust in that field and protecting investors or consumers?" This underscores his belief that investor protection is essential for the sustainability and growth of the industry. While Gensler has classified most cryptocurrencies as securities, he reiterated that Bitcoin is an exception. He encouraged the registration of crypto platforms with the SEC to ensure compliance and transparency. Gensler also mentioned that investors can now express their views on Bitcoin through exchange-traded products, which provide a regulated avenue for investment. The discussion also touched on the political landscape, with Gensler being asked about the differing views on cryptocurrency from presidential candidates Vice President Kamala Harris and Donald Trump. Harris has expressed a commitment to fostering innovation in digital assets while ensuring consumer protection, whereas Trump has criticized regulatory actions against crypto and proposed his own crypto initiative. Gensler refrained from commenting on the political implications but maintained that investor protection is crucial for fostering innovation across all sectors. Overall, Gensler's remarks highlight the SEC's ongoing efforts to regulate the cryptocurrency market and the importance of establishing a framework that protects investors while allowing for innovation.