The new chairman of the US Securities and Exchange Commission (SEC) Gary Gensler (Gary Gensler) expressed his views on how the SEC plans to regulate cryptocurrencies (especially Bitcoin). He called Bitcoin a “digital, scarce store of value” and emphasized the need to provide some investor protection for this asset class.
The new chairman of the US Securities and Exchange Commission talks about Bitcoin, cryptocurrency regulation
SEC Chairman Gary Gensler talked about cryptocurrency policy and Bitcoin in an interview with CNBC on Friday. Gensler teaches courses in financial technology, cryptocurrency and blockchain technology at the Massachusetts Institute of Technology (MIT). Last month, he was confirmed as the new chairman of the SEC.
In response to a question about how he will regulate cryptocurrency, the chairman replied: “For something, this is a type of security, and the SEC has a lot of authority.” The former MIT professor pointed out that he would encrypt The currency is called “cryptographic tokens” and he emphasized that “a lot of encrypted tokens… are indeed securities.”
He then cited the work done by the former chairman and the SEC under his leadership. Gensler said: “The previous SEC took many enforcement measures to include certain security or investment contract tokens in the rules.”
The SEC chairman then turned his attention to Bitcoin, noting that “this is about half of the current $2 trillion asset class.” he thinks:
It is a digital, scarce store of value, but highly volatile, so some investors want to trade it…for its volatility, in some cases simply because of its relevance to other markets Lower. I think we need more investor protection there.
Gensler pointed out that, unlike stocks and derivatives markets, there is currently no “federal government overseeing cryptocurrency exchanges.”
He emphasized that if investors want to trade cryptocurrencies, then the SEC needs to “take some investor protection measures.” He pointed out that this is “a gap in the current system” and needs to be resolved.
Gensler only explained when talking about Bitcoin and not any other tokens that the SEC’s “sister institution, the Commodity Futures Trading Commission” [CFTC] Has limited anti-fraud and anti-manipulation powers. Despite this, he reiterated that “no federal authority has actually introduced a system to cryptocurrency exchanges.” “
The new chairman of the SEC further pointed out:
We will work with Congress to provide protection for people who want to invest in this speculative asset class if they see it appropriate.
What do you think of SEC Chairman Gensler’s comments on Bitcoin and cryptocurrency regulation? Let us know in the comments section below.
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