In a recent interview with CNBC, Securities and Exchange Commission (SEC) Chair Gary Gensler shared his perspective on Bitcoin and the future of cryptocurrency regulation as his tenure nears its end on January 20.
Gensler clarified that the SEC has never classified Bitcoin as a security, despite its volatile and speculative nature. He compared Bitcoin to gold, noting its significant global interest, but also acknowledged that other cryptocurrencies could potentially rise in importance over time.
Addressing the broader cryptocurrency landscape, Gensler highlighted the need for many crypto projects to demonstrate real-world utility and solid fundamentals in order to survive. He warned that without these characteristics, many projects would likely fail. Gensler also revealed that he has refrained from owning any cryptocurrency for the past seven or eight years.
During his leadership, Gensler aggressively pursued cryptocurrency regulation. Under his guidance, the SEC initiated nearly 100 enforcement actions aimed at protecting investors and preventing fraud. He pointed out that some crypto exchanges were not merely acting as platforms but were also trading against their own customers, leading to significant issues with fraud and market manipulation.
Gensler also referenced the work of his predecessor, Jay Clayton, who had initiated around 80 enforcement cases to safeguard investors in the crypto space. He stressed that the SEC’s primary responsibility is to uphold the law and provide clarity, reaffirming that Bitcoin does not qualify as a security. However, he noted that other cryptocurrencies could be classified differently depending on their structure.
As Gensler prepares to step down, Paul Atkins is set to take over as SEC Chair. Atkins has advocated for clear and fair regulations that foster innovation within the cryptocurrency industry. In contrast, Gensler has consistently criticized the high-risk nature of many crypto projects, likening them to speculative investments.
In response to questions about his departure, Gensler emphasized that the SEC’s work would continue uninterrupted regardless of leadership changes. “We have an important duty, and we are going to fulfill that duty all the way through regardless of who the leadership is,” he stated.
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