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Neosify - Buy, Stake & Earn Crypto

3 Ways to Identify a Crypto Scam, according to SEC Chair Gary Gensler

By ZeroRequiem | Zero Ex | 29 Jan 2023

Hey Peeps!




On January 11th, our good friend Gary Gensler, the Chair of the SEC, discussed "Financial Readiness" on Twitter Spaces with SEC Commissioner Caroline Crenshaw and Sgt. Lawrence Holmes from the U.S. Army.

The Twitter Spaces discussion was uploaded onto YouTube in its entirety on January 27th. 

Here is the full discussion uploaded to YouTube, if you feel inclined to give it a listen:


Most [cryptocurrencies] are not complying with the securities laws, but they should be. It’s the Wild West, I’d say you have to really wonder if there is a ‘there’ there. Most of these tokens will fail. That is because venture capital fails, new startups fail, but also because history tells us there is not much room for micro-currencies."

- Gary Gensler, SEC Chair 


The discussion over crypto begins around the 19:30 minute mark of the Twitter Spaces.

Gary Gensler states that the 3 ways to identify a Crypto Scam are:

  • The less paperwork/documentation that a project or company has, the more likely there is something going on. 
  • The promise of high returns, and pressure to make quick decisions are signs of additional risk.
  • If the project cannot be easily explained or understood, this may be concerning. 


The SEC Chair also asks all investors to please do not get caught up in the FOMO (Fear Of Missing Out). 

Gensler went on to call crypto "highly speculative" and generally "non-complaint". 



The bottom line is there’s increased risk when you invest in these novel, speculative, volatile investments that really lack basic protections and regulations. So if you’re considering investing in crypto, give careful consideration of how much of your portfolio you devote to it, and certainly no more than you can afford to lose.

- Caroline Crenshaw, SEC Commissioner


SEC Commissioner Caroline Crenshaw had some harsh and blunt comments about cryptocurrency. 

She said that crypto is novel, speculative, claims to be transparent, and is note for its scams. 

The SEC Commissioner even stated that “what is on the blockchain is transparent, but the rest of what’s there is not transparent". 


I do not think it is a stretch to say that the SEC Commissioner Caroline Crenshaw does not have a favorable opinion on cryptocurrency. 


How do you feel about Gary Gensler's comments?

Do you agree with the 3 ways to identify a crypto scam?


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ZeroRequiem Verified Member

lets agree to disagree

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Zero Ex

life is tough, get a helmet

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