US Securities and Exchange Commission (SEC) Chairman Gary Gensler recently discussed the regulation of the cryptocurrency industry in an interview with New York Magazine. According to Gensler, all cryptocurrencies except Bitcoin are considered securities and fall within the SEC’s jurisdiction.
He expressed concern that some individuals are using opaque mechanisms to promote crypto assets and attract investors, and that many crypto organizations offer services similar to traditional companies and should be regulated accordingly.
However, Gensler also praised blockchain technology as a valuable new innovation that is more transparent and resistant to cyberattacks than centralized systems. He noted that the SEC has tightened its policy towards virtual asset service providers, and criticized cryptocurrencies as unlikely to become reliable stores of value or alternative payment mechanisms.
Gensler acknowledged the growing interest in cryptocurrencies and the potential economic value they could bring, but emphasized the historical importance of a single monetary unit in connecting economies.
He warned that most cryptocurrencies are likely to fail and advised US military personnel to refrain from investing in digital assets due to their highly speculative nature. Overall, Gensler’s comments suggest that while the SEC recognizes the potential of blockchain technology, it remains cautious and vigilant in its approach to regulating the cryptocurrency industry.