Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC), has recently expressed his views about Bitcoin and other cryptocurrencies. In an interview with CNBC, Gensler said that Bitcoin and hundreds of other cryptocurrencies are speculative assets. Additionally, the SEC head highlighted the importance of a clear crypto regulatory framework. “Bitcoin and the hundreds of other coins that investors are trading is a speculative asset class.
"#Bitcoin and the hundreds of other coins that investors are trading is a speculative asset class," says @GaryGensler. "The trading platforms they are on are not currently under a regulatory regime that protects them like they are trading on the NYSE." pic.twitter.com/cXN8wnbHjE
— Bloqport (@Bloqport) August 4, 2021
SEC Chair highlights the importance of crypto regulations.
Gary Gensler said that crypto trading platforms are not currently under a regulatory regime that protects them like they are trading on the NYSE. The crypto market has seen consistent growth since the start of this year. Despite a dip in May and June, the overall market cap of digital currencies is up by more than 100% in the last six months. Bitcoin, the world’s most valuable digital currency, is currently trading near $40,000 with a market cap of approximately $740 billion. Due to the latest surge in crypto adoption, discussions regarding a clear regulatory framework for cryptocurrencies have increased rapidly.
Gensler said that the main purpose of the SEC is to protect investors.
Earlier last year, the US Treasury proposed strict cryptocurrency KYC requirements to combat the potential involvement of Bitcoin and other digital currencies in illegal activities. In an interview with CNBC, Gensler said that the main purpose of the SEC is to protect investors. “I’m pro-innovation, but we also need rules of the road. Satoshi Nakamoto’s invention (Bitcoin), if it is going to meet its potential, it needs to come within public policy frameworks,” SEC chair added. Due to the lack of a clear regulatory framework for Bitcoin and other crypto assets, institutional interest has dried up in the last few months.