Known for being a market thug due to regulatory pressure from his agency, Gensler was proud of his work. As an example, he again mentioned that the cryptocurrency sector is full of scammers and con artists.
Gary Gensler Image: Youtube
SEC Chairman Gary Gensler spoke at an event at New York University School of Law in Manhattan on Wednesday (9) where he spoke about Bitcoin and cryptocurrencies. His remarks were recorded by CoinDesk.
Known for being a market thug due to regulatory pressure from his agency, Gensler was proud of his work. As an example, he again mentioned that the cryptocurrency sector is full of scammers and con artists.
However, the highlight is his comments that Bitcoin and other cryptocurrencies will never be currencies.
Gary Gensler Attacks Bitcoin Again
Despite approving Bitcoin and Ethereum ETFs in 2024, SEC Chairman Gary Gensler remains skeptical about the future of these cryptocurrencies. This is because, in his view, they do not meet the three requirements for an asset to be a currency.
“You want a monetary unit because it’s a store of value, a medium of exchange, a unit of account. All of these things have huge network economies. So it’s unlikely that these things will ever become a currency. They’ll have to demonstrate their value through publicity, through use… In the same way that you choose between the thousands of securities listed on a stock exchange.”
In the case of Bitcoin, it is already seen as a store of value. However, it is still not widely accepted in stores and is rarely used to price other products and services.
Digging deeper, Gensler said he taught these things during his time at MIT and that these debates go back to Plato and Aristotle.
“It’s 3,000 years of history. Hundreds of great nations, thousands of nation states, we tend to have one currency per geographic economic state. And we usually don’t even have bimetallism,” Gensler said.
Despite Gensler’s example, it’s worth noting that El Salvador is bucking this trend by having both the US dollar and Bitcoin as legal tender. However, the adoption of Bitcoin as a medium of exchange is still not as popular in the country.
SEC chairman says market is full of scammers
The SEC has sued a range of industry players in recent years, from Ponzi scheme leaders to leading brokerage firms, a stance that has divided opinion. Regardless, Gary Gensler said he was proud of his work.
“Without a police officer on duty, will all of our laws be enforced? It’s something about human nature. In finance, we play close to the line,” Gensler said. “Sometimes we have to take enforcement action to get people back on the right side of the line.”
“Lots of scammers, lots of con artists, lots of scams. With all due respect, the main names in this sector are either in prison or awaiting extradition at this moment.”
Because of this stance, Donald Trump has promised to fire Gensler on his first day in office if he wins the presidential election in November.