The Chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has reportedly warned that a crackdown on the crypto industry is imminent, following the high-profile collapse of FTX.

Gensler is said to have stated that the SEC is targeting crypto firms that do not comply with its rules, comparing them to casinos.

He also commented that the practice of crypto exchanges proving they have reserve assets to back up their customers’ funds is meaningless, as it does not meet current regulatory disclosure standards.

Gensler emphasized the importance of crypto firms separating their funds and their customers’ funds and accurately recording all transactions.