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The former chair of the SEC, Gary Gensler, defended his strong stance on bitcoin regulations. He stated that the cryptocurrency market is dangerous and generally violates financial regulations. He claimed that other cryptocurrencies must show genuine worth in order to endure while drawing a comparison between gold and Bitcoin.
Gensler outlined that businesses must comply with current regulations and safeguard investors. He managed his position and denied possessing any cryptocurrency. He continued to highlight industry transparency and unambiguous regulations.
Gensler Defends Crypto Rules
In a Tuesday interview with CNBC, Gary Gensler, the former chair of the U.S. Securities and Exchange Commission (SEC), justified his regulatory position on cryptocurrencies. Gensler stated the cryptocurrency market is beset by speculative activity and disregarding significant financial regulations. He said:
“This extremely speculative industry, cryptocurrency, has exceeded a number of regulations, including those about sanctions, money laundering, and, in our case, securities."
He outlined that most other tokens do not adhere to disclosure regulations, even if Bitcoin is not considered a security. He remarked that although Bitcoin is not a security, the investing public has faced over the years from these 10,000 or 15,000 other tokens.
Bitcoin's Role and Crypto Future
Gensler linked Bitcoin to gold as a store of value, accepting it's expanding substantially in international financial markets. The chairman of the SEC claimed:
"Bitcoin is, in my opinion, a very risky and optimistic asset. But 7 billion people are interested in trading it, and there are 7 billion people in the world.
Bitcoin is the same as gold, which has been estimated for 10,000 years. In the future, it could also be something differ."
He claimed that their future is doubtful unless other cryptocurrencies show their usefulness. "These other thousands of projects will be going to end unless they show their use case and that they have underlying principles," he claimed.
Gensler Highlights Investor Protection
Gensler highlighted the importance of current regulations and transparency in response to complaints that the SEC promoted enforcement over clear industry suggestions. It appears that mood impacts this cryptocurrency market far more significantly than facts. However, if the facts are present, I mean if they reveal the information the securities rules need.
That's the fundamental deal," he said. Gensler managed his consistency in the face of reports regarding his personal opinions, continuing: "I've never held any of these." And I have been doing this frequently for seven or eight years. His comments indicated his strong conviction that investors should be protected by thorough compliance with rules.
