SEC Chair Gary Gensler voices disdain for Bitcoin, highlighting its involvement in ransomware incidents.
SEC Chair Gary Gensler has taken a critical stance on Bitcoin, raising questions about its use cases despite the agency’s approval of Bitcoin ETFs earlier this year.
In an interview with CNBC, Gensler clarified that the SEC’s approval of Bitcoin ETFs does not signify an endorsement of Bitcoin as an asset class; rather, it is a merit-neutral decision. Gensler emphasized that the cryptocurrency industry is rife with fraud and manipulation, and he believes that Bitcoin’s current use cases are primarily centered around illicit activities.
Gensler went on to highlight Bitcoin’s prominent role in ransomware attacks, asserting that its popularity is largely driven by speculative investment rather than genuine utility. He compared Bitcoin to major national currencies such as the Dollar, Euro, and Yen, highlighting the significant economic differences between crypto and traditional fiat currencies.
The SEC Chair also voiced concerns about the prevalence of fraud and financial losses in the crypto industry, noting that bankruptcies have become increasingly common. In addition, Gensler disputed the notion that Bitcoin is truly decentralized, arguing that it is concentrated among a small number of entities.
When asked about the potential for Ethereum ETFs, Gensler acknowledged that the SEC has received multiple applications but stated that he does not want to prejudge the decision. Ultimately, the fate of these applications will be determined by a commission of five members.
In related news, Federal Reserve Chair Jerome Powell recently called for the establishment of a regulatory framework for stablecoins. The growing popularity of stablecoins has raised concerns about their potential impact on financial stability, prompting regulators to take action.
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