SEC Chair Gary Gensler on the Future of Crypto
“It’s Unlikely This Stuff is Gonna Be a Currency”
During a recent event at NYU School of Law, SEC Chairman Gary Gensler expressed skepticism about the future of cryptocurrencies like Bitcoin as viable currencies. He emphasized that they are more likely to be perceived as stores of value rather than mediums of exchange.
Gensler's comments came in response to questions about the utility of cryptocurrencies if fully regulated. He referenced historical economic principles, such as Gresham’s law, noting that nations typically prefer a single currency due to its benefits as a store of value and unit of account.
He also defended the SEC's rigorous enforcement actions against crypto firms, stating that the industry is plagued by fraud and scams. Gensler believes the existing regulatory framework, particularly the Howey Test, is sufficient to evaluate what constitutes an investment contract.
As the conversation unfolded, Gensler remained firm on his views, leaving many in the crypto community to ponder the implications for the future of digital assets.
