There has been a cold war going on between SEC and the cryptocurrency market. However, the worst fears of digital investors might be coming to fruition with the recent statement of the SEC chief. It is worth mentioning that Gary Gensler is known for his stringent financial policies during his tenure at the CFTC.
He also taught blockchain technology at MIT before he was appointed as the current chief of the Securities and Exchange Commission. Last year, addressing the state legislative body, Gensler claimed that SEC would be working on bringing more lawsuits from the cryptocurrency business sector. To this end, he also demanded a budget extension for the regulatory agency.
Gary Gensler Expressed his Grave Concerns Regarding Crypto Industry
Gary Gensler has made his stance towards cryptocurrency more than clear on several occasions since his appointment. He was invited as the keynote speaker at the Penn Law Capital Markets Association Meeting recently. Addressing the attendees at the Pennsylvania Carey Law School, Gensler took a bold stance on cryptocurrencies.
He exclaimed that most digital assets are digital securities. It is worth noting that SEC is already suing Ripple Labs for more than a year under the same pretext. Talking to the audience, he recently claimed that he is expected to shed a better light on the prospects for the $2 trillion cryptocurrency market. He made it clear that his stance was not official and added that people should be more open-minded toward the new technology that is still in the development stages.
The Office of Comptroller of Currency recently issued approval for several stablecoin projects to trade freely on public blockchain networks. However, Gensler claimed that stablecoins are not suited for commercial and payment usage. He further added that the stablecoins are not legal tender. He went on to raise the issues connected to the crypto byproduct.
Gensler added that there is a lack of stablecoin regulatory framework that hinders public safety. He further claimed that in some cases, threat actors could take advantage of stablecoins to wash black cash or launder money. He further claimed there are very few safety nets and insurance options available for the financial risks associated with stablecoins due to the high instability factor.