SEC’s Gary Gensler has further cleared their stance on Cryptocurrencies and stablecoins in a recent Interview with the Washington Post. And the unsurprising answer is, Skeptic!
During this interview, the Securities and Exchange Commission Chairman addresses two primary subjects of cryptocurrencies (private money) and stablecoins. With not so witty dramatic analogies, Gensler regards the crypto market as “wild west casino” and the stablecoins the “poker chips” of it.
Gary Gensler on Private Money
Following a bearish summer for crypto after the China Lockdowns, It seems that the United States Federal Government shares the same views as China.
By the looks of it, we predicted the US treasury and the SEC will take an opposing stance regarding cryptocurrencies. This recent interview was sadly an indication of upcoming crackdowns and harsh regulations. And the news reached us on a rainy day, amidst the bearish market caused by China’s Evergrande possible default.
Gensler expressed his skepticism regarding private money stating that they have proven to unsustainable. In case of cryptocurrencies, having thousands of such project is an even worse according to Gensler.
“Private monies usually don’t last that long. So, I don’t think there’s a long-term viability for 5,000 or 6,000 private forms of money. History tells us otherwise,” said Gensler. To address this issue, he stated “So, in the meantime, I think it’s worthwhile to have an investor protection regime placed around this”.
Once again, He called the more than $2 trillion crypto market as “wild west”.
On Stablecoins and Exchanges
The stablecoins have been on the spotlight lately. US Treasury Janet Yellen and SEC’s Gary Gensler have both called for regulations on stablecoins. During the interview, Gensler called the stablecoins as “Poker Chips” of the crypto casino.
“The SEC is putting together a report about stable coins under the guidance of Treasury Secretary Janet Yellen” said Gensler. It would be possible that they work with the Congress to maintain a better leverage.
In a senate hearing last week, Gensler told the Banking Committee that the cryptocurrency exchanges need to register with SEC since their products or tokens may be securities.
“Those platforms should come in, they should figure out how to register, be an investment–investor protection remit,” he told the Washington Post.
The Regulated future of Cryptocurrency
It would be impossible to make predictions about the future of cryptocurrencies. However, we should wait and see up to what extent the US is willing to push regulations on crypto. China has set the bar high with crackdowns. Despite that, cryptocurrencies showed great resilience maintaining the $30k support. It would be great to know how far can policymakers affect the market this time.
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