Future SEC chairman: “blockchain and cryptocurrencies have become catalysts for change”

Former CFTC chairman and SEC chairman candidate Gary Gensler, nominated by US President Joe Biden, called blockchain and cryptocurrencies “catalysts for change.”

Speaking to the US Senate Banking Committee, the former chairman of the US Commodity Futures Trading Commission (CFTC) tried to find a middle ground between regulating the cryptocurrency industry and stimulating new innovation. Gensler highlighted the many benefits of blockchain technology, including the reduced cost of domestic and international transactions, and the secure storage of medical data, documents and financial information.

“I am not a maximalist or a minimalist, but I believe that blockchain has become a catalyst for change. Bitcoin and other cryptocurrencies have expanded access to financial services and made us take a fresh look at the payment system, ”said the future chairman of the US Securities and Exchange Commission (SEC).

However, Gensler noted that cryptocurrencies have raised a sensitive issue of investor protection, which should be given special attention. According to Gensler, if he is approved as chairman of the SEC, he will have to work not only on the development of innovations. The agency will study in detail what may come under US securities laws, and what specific investor protection laws should apply to cryptocurrency exchanges. This is necessary to prevent fraud with cryptocurrencies, and the SEC must remain “technology neutral”.

Rohit Chopra, candidate for the chair of the Bureau of Consumer Financial Protection, also believes that blockchain can speed up payments and enable them to be processed in real time. However, for the ubiquitous use of blockchain in the payment field, a number of work needs to be done to protect users from risks. Chopra believes that the United States should keep up with other countries. For example, China has already repeatedly tested the digital yuan in different cities of the country.

Chopra has previously advocated payments modernization. In 2019, he called on the US Federal Reserve to accelerate the development of the FedNow platform, an electronic instant payment system between US financial institutions, in connection with the upcoming launch of the Libra stablecoin. This unreleased coin has garnered a lot of attention from international regulatory bodies. They fear the Libra launch will negatively impact fair competition and compliance with money laundering laws. In addition, Chopra raised concerns about the privacy of user data. He is interested in what information is collected by technology companies and how it is used.

Gensler previously stated that the stable cryptocurrency Libra is a security that must be regulated by the SEC. He held the same opinion about ETH and XRP, calling them unregistered securities that violate the law. Perhaps as the cryptocurrency industry developed, Gensler became more loyal to digital assets.