In a recent interview with CNBC’s Squawk Box, outgoing US Securities and Exchange Commission (SEC) Chair Gary Gensler offered a nuanced perspective on the digital asset landscape, particularly focusing on Bitcoin (BTC) and the broader crypto market.
His remarks come amid increased scrutiny of the industry, which has faced regulatory challenges and calls for greater compliance with existing laws.
SEC Chair Gensler Highlights Alleged Regulatory Gaps In Crypto
During the interview, Gensler emphasized his belief in democratic processes and the importance of regulatory frameworks, stating, “This field, the crypto field, a highly speculative field, has not been compliant with various laws.”
Gensler pointed out that while Bitcoin is not classified as a security, many of the approximately 10,000 other tokens on the market fall under existing securities regulations.
“The investing public has been hurt over the many years,” Gensler added, referencing the SEC’s history of enforcement actions aimed at protecting investors from fraud and manipulation.
The former chair further highlighted the SEC’s ongoing commitment to law enforcement, noting that his predecessor, Jay Clayton, initiated around 80 cases against “non-compliant entities” in the crypto space.
Gensler’s focus has been reportedly on ensuring that investors receive adequate disclosures and protections, particularly in a market where many assets trade primarily on sentiment rather than fundamentals.
‘7 Billion Want To Trade Bitcoin Like Gold’
Despite his cautious stance on the overall crypto market, Gensler acknowledged the immense interest in Bitcoin, stating, “I think Bitcoin is a highly speculative, volatile asset. But with 7 billion people around the globe, they want to trade it just like we have gold for 10,000 years.”
Gensler also discussed the SEC’s efforts to implement reforms in the broader financial markets, including improvements in corporate governance and transparency.
He noted significant changes to the US Treasury market, which is projected to grow significantly in the coming years. “Our $28 trillion Treasury market is predicted to grow to about $35 or $36 trillion in four years,” he stated, underscoring the need for robust regulatory frameworks to ensure market stability.
Despite the optimism surrounding Bitcoin, Gensler cautioned that policy uncertainties remain, particularly in light of the recent presidential transition. He acknowledged that the SEC’s stance on cryptocurrencies could evolve as new regulations are established, indicating a willingness to adapt to changing market dynamics.
As Gensler prepares to step down from his role, his tenure has been marked by a vigorous approach to regulating the crypto space, with a focus on investor protection and market integrity.
The future of cryptocurrency regulation remains to be seen under President-elect Donald Trump and his new approach toward Bitcoin and the broader digital asset industry with a key focus on innovation.
At the time of writing, Bitcoin has managed to climb nearly 3% in the 24-hour time frame towards the $97,400 level, after a brief correction to $89,300 on Monday.
Featured image from DALL-E, chart from TradingView.com
