Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), has criticized the non-compliant nature of the crypto markets and their false narrative of decentralization. He also pointed out the flaws in the business models of crypto platforms, which are often built on non-compliance and conflicts.

Gensler emphasized the need for regulation in the crypto industry to protect investors and prevent potential systemic risks, especially as traditional finance and crypto become increasingly intertwined. He cited recent banking issues where four banks failed, with two having significant crypto books and the third having a significant stablecoin issuer put their deposits there.