Gary Gensler: "Cryptocurrency innovations should not undermine the stability of the system" – Bits Media

The SEC chairman called cryptocurrencies a highly speculative asset class and said, that in many cases they have no intrinsic value.

During an interview with the Washington Post, Gary Gensler (Gary Gensler) stated, that the value of cryptocurrencies may fall sharply, grow up like that. Chairman of the United States Securities and Exchange Commission (SEC) added, that for innovation in the field of cryptocurrencies it is important not to undermine the stability of the system.

"I think, that it is better to include cryptocurrencies in the framework of public policy and ensure that important goals for these innovations are achieved within the framework of this policy.”, He said.

He noted, that cryptocurrencies are a highly speculative asset class, and many of them often have no intrinsic value. Regarding the issue of securities, Hensler said, that the SEC has great powers, when it comes to crypto assets, which have the characteristics of an investment contract.

“Credit platforms have thousands of crypto assets at their disposal, and very likely, that these platforms have investment contracts, short-term securities or other assets, that meet the definition of a security", - said the chairman of the SEC.

He added, that lending and trading platforms may face problems. According to Hensler, the United States has experimented with private forms of money in the past, citing the banking era of the 1860s. At that time banks competed with each other, issuing various banknotes.

“All of this came with a lot of expense and a lot of other problems.”, He added. "I don't see long-term viability for five or six thousand forms of private money".

Last week, Gensler warned, that cryptocurrency exchanges, which have crypto assets listed, representing securities, must register with the regulator. Previously, he called on the European Parliament to cooperate in regulating crypto assets and DeFi.

Some market participants also advocate tightening regulation of crypto assets. In a letter to the SEC chairman this week, a U.S. investor advocacy group called the cryptocurrency industry the “Wild West” and called for tighter regulation..