SEC's Gensler: Crypto market is 'rife with fraud and abuse,' while PFOF rules need updates

Gary Gensler, chair of the U.S. Securities and Exchange Commission, said Wednesday that regulation will improve the cryptocurrency market, which he now believes is "rife with fraud and abuse." In addition, the top U.S. securities regulator told CNBC that more oversight was needed for the payment-for-order-flow business model that has enabled companies like Robinhood (NASDAQ:HOOD) to offer zero-commission trading. He argued that the PFOF process lacks transparency and might cost traders by not offering best execution of transactions. SPACs also appeared on the SEC chair's list of areas that require additional scrutiny. Gensler said he wanted more disclosures on topics like fees, redemptions and earnings and revenue projections. As for the crypto markets, Gensler argued that bringing more regulatory structure was "really about bringing basic investor protections" to the sector. "If this market has any potential, it's not going to long survive outside of an investor-protection framework," he said. Turning