During a CNBC interview, SEC Chair Gary Gensler stressed the importance of investor protections for the cryptocurrency industry, warning that it won't survive without them. He underscored the need for disclosures, referencing the turmoil in the market that led to the collapse of several major firms in 2022, including FTX and Three Arrows Capital. Gensler pointed out that significant figures in crypto, like FTX’s Sam Bankman-Fried, now face prison sentences, highlighting the extensive losses and bankruptcies that have affected the sector.

He reiterated his stance that most cryptocurrencies should be classified as securities, with the exception of bitcoin, which he and his predecessor agree is not a security. Gensler emphasized that the enforcement of existing laws is crucial and criticized those in the crypto field for failing to comply.

Separately, Congressman Tom Emmer has taken Gensler to task over his leadership at the SEC, questioning his accountability and accusing him of expecting political allegiance from staff. Emmer highlighted issues in the Debt Box case, where SEC attorneys allegedly misled a court, leading to sanctions against the agency. He characterized Gensler's approach as creating confusion in the marketplace and claimed that the SEC has misused its enforcement tools. Emmer contrasted Gensler's statements about investor protection with what he sees as a lack of clarity and accountability within the agency.

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