In an exclusive interview with CNBC, Gary Gensler highlighted that fiat currencies are issued by central banks, thereby ensuring that each nation or region has an officially recognized currency. However, this cannot be said for Bitcoin.
When addressing JPMorgan Chase CEO Jamie Dimon’s assertion that Bitcoin is primarily used for criminal activities such as drug trafficking, money laundering, and tax evasion, Gensler agreed, acknowledging that Bitcoin has gained popularity among hackers commanding ransomware attacks.
Counteracting this claim, interviewer Joe Kernen pointed out that significant amounts of money can also be laundered using US dollars. Nevertheless, Gensler argued that society has become accustomed to utilizing fiat currencies such as the US dollar, euro, or yen for everyday transactions, including salary payments and purchasing goods.
The TV host brought up the advantage of decentralized nature that Bitcoin offers while highlighting that central bank policies can adversely affect the value of government currencies. However, Gensler expressed the belief that historical evidence suggests finance has consistently moved towards centralization.
In response to Kernen’s observation that crypto enthusiasts place more trust in Bitcoin than in a central bank that enables financial authorities to “spend trillions of dollars,” Gensler stated that it ultimately boils down to individual investment preferences and the willingness to engage in speculative investments.
The approval of Bitcoin spot ETFs by the SEC took place approximately a month ago. When asked for his opinions on the Bitcoin market, given its recent surge above $50,000 and the considerable inflow of funds into cryptocurrency ETFs, Gensler emphasized:
“Our primary focus is safeguarding investors. The approval of cryptocurrency ETF applications was based on specific criteria, and it should not be misconstrued as an endorsement of Bitcoin itself.”
Despite being widely recognized as a vocal critic of cryptocurrencies, Gary Gensler’s decisive vote in favor of approving Bitcoin-linked spot ETFs has been intriguing. SEC Commissioner Caroline Crenshaw has denounced the agency’s decision as a failure.