SEC Chairman Gary Gensler, known for his negative approach to Bitcoin (BTC) and cryptocurrencies, made important statements about the crypto market in an interview with Yahoo Finance.
Gensler first evaluated the addition of the cryptocurrency platform Celsius to companies that have filed for bankruptcy after being affected by the decline in cryptocurrencies.
Referring to the high-interest returns offered to investors by crypto companies, Gensler said, “If it is too good to be true, then maybe it is. There could be a lot of risk in those.”
The head of the SEC said that he sees Bitcoin as separate from other cryptocurrencies, and in this context, BTC should be considered a commodity, not a security.
Noting once again that regulators are necessary for the cryptocurrency space, Gensler stated that the institution could use its executive power to regulate crypto.
Talking about stablecoins, Gary Gensler stated that stablecoins also need regulation.
“dollar-backed cryptocurrencies (stablecoins) need protection against fraud and manipulation. Because stablecoins are similar to money market funds, investors can earn returns by investing in such tokens. It may be appropriate for Congress to weigh in to ensure financial stability.”
Gensler has said in previous interviews that most cryptocurrencies, other than Bitcoin and perhaps Ethereum (ETH), are subject to security laws and must be registered as securities.