The SEC chairman called cryptocurrencies a highly speculative asset class and said that in many cases they have no intrinsic value.
During an interview with the Washington Post, Gary Gensler said that the value of cryptocurrencies could both plummet and soar. The chairman of the US Securities and Exchange Commission (SEC) added that it is important for cryptocurrency innovation not to undermine the stability of the system.
“I think it’s better to include cryptocurrencies in government policy and ensure that important goals for these innovations are met within that policy,” he said.
He noted that cryptocurrencies are a highly speculative asset class, and many of them often have no intrinsic value. On the issue of securities, Gensler said the SEC has a lot of power when it comes to cryptoassets that have the characteristics of an investment contract.
“Lending platforms have thousands of crypto assets at their disposal, and it is highly likely that these platforms have investment contracts, short-term securities or other assets that fit the definition of a security,” said the SEC chairman.
He added that lending and trading platforms could face challenges. According to Gensler, the United States has experimented with private forms of money in the past, citing the banking era of the 1860s. At that time, banks were competing with each other by issuing different banknotes.
“All of this was associated with high costs and many other problems,” he added. “I don’t see the long-term viability for five or six thousand forms of private money.”
Gensler warned last week that cryptocurrency exchanges listing cryptoassets that are securities must register with the regulator. He previously called on the European Parliament to cooperate in regulating cryptoassets and DeFi.
Some market participants are also in favor of stricter regulation of cryptoassets. This week, in a letter to the SEC chairman, the US investor advocacy group called the cryptocurrency industry the “Wild West” and called for stricter regulation.
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