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SEC Chair Gary Gensler has raised concerns about artificial intelligence's (AI) increasing influence in financial markets and its effects on the cryptocurrency sector.
In a recent interview with Bloomberg, the chair of the U.S. Securities and Exchange Commission, Gary Gensler, said, "All too many people" have suffered because of the cryptocurrency business. Gensler comments on crypto:
"Too many people have been hurt, too many have lost money, and too many have waited in bankruptcy courts to handle their claims".
Gensler on Crypto
According to Gary, many ordinary investors have lost money as a result of not having enough information about the firms they were funding. He stated:
“We follow the law and the way the courts understand it in everything we do. We adapt if the courts give it another meaning. That's what we do. It's a component of our wonderful democracy".
The chair of the SEC repeated the need to make the correct statements to the public. Failing to do so could harm confidence in the financial system. The head of the SEC has stated that blockchain technology and current security regulations are not incompatible.
The SEC believes it's critical to protect investors from possible issues of interest, even if they should be free to make their own judgements. "It is a field that has a lot of conflicts in the middle of it," said Gensler.
“Happy Sweet 16”
Gensler also reminded us that this week marks Bitcoin's 16th birthday. On October 31, the legendary creator of the first cryptocurrency, Satoshi Nakamoto, released their ground-breaking white paper.
“It will be 16 years this Halloween since Satoshi Nakamoto wrote the white paper. So, happy Sweet 16 in a week!"
Gensler has acknowledged Bitcoin's non-security status many times. But, it is still unknown how most other tokens are regulated.
Gensler Reign Over Crypto
This SEC head, more than any other member of the U.S. government, was an outspoken enemy of its goals. When the securities agency has a new head in the upcoming year, that uncontrolled resistance to the way cryptocurrency companies wish to operate is probably going to stop.
Gensler's five-year term as SEC chair ends on January 5, 2026. But, according to custom, a chair will resign if the other party wins the presidency. Gensler's term does not automatically stop if President Donald Trump wins the election.
If he were to take a stand, he could serve out his commissioner term and keep the Democratic majority at the agency for how long it takes the Senate to approve the new president's selections.
When a reporter asked him if he would quit if Trump won, Gensler chuckled softly and said he wouldn't comment on the elections. Then he went on to say, "Elections have consequences."
