The U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has faced backlash from the crypto community after using a dog-goldfish analogy to explain the importance of compliance with security laws.

“Many crypto platforms are just pretending that these investment contracts that they offer are more like goldfish and the lack of compliance by these crypto platforms means that you don’t have basic investor protections.”

He further noted that many crypto platforms combine the activities of an exchange, a broker-dealer, and a clearing house all into one, and not registering these functions puts investors at risk.