The Chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, reveals his stance on Bitcoin by saying he does not support his off-grid financial approach.
“In 2008, Satoshi Nakamoto wrote this article partly as a reaction, a kind of off-grid approach. It is not surprising that there is a competition that you and I do not support, but that is trying to undermine that global consensus.
Specifically, Gary Gensler said at the Digital Asset Compliance and Market Integrity Summit (DACOM), held in New York, that the current banking system is the culmination of 40 years of adjustment.
«About 40 years ago we covered our digital money system against money laundering and various sanctions and regimes around the world. Also, we put a digital currency system on it called our banking system.».
Likewise, he stressed that cryptocurrencies have been around for a long time: “The US dollar, the euro and the yen, and most public companies, are digital. You buy and sell stocks that are digital, you buy and sell Treasuries that are digital. There is no longer any physical treasury debt. I prefer to classify these assets as digital.
It also does not support this “off the grid” approach. Since it deteriorates the banking consensus.
According to Gary Gensler, Bitcoin is actively trying to compete with the banking system.
Bitcoin competes with the traditional financial system
However, he expressed that Bitcoin (BTC) is an alternative to the traditional financial system. And, for cryptocurrencies to continue to thrive, authorities must be carefully regulated.
«Without regulation, the crypto sector remains akin to a Wild West».
By the way, Gensler considers the similarities with past times in that country, in which many unregulated institutions issued their own forms of currency. And then they will give way to the dollar and the creation of the Federal Reserve.
Very importantly, Gary Gensler continues to ensure that the risk is caused by insufficient regulation “Financial Instability”.
He urged the ‘gatekeepers’ of the many existing cryptocurrency projects to find a way to register and enter the realm of investor protection. These projects will not evolve well outside the principles of public policies.
Gary Gensler encourages centralization. «Work with us»
Gary Gensler and former SEC Chairman Jay Clayton argue that they see a future for cryptocurrencies only within a regulatory framework. An environment of trust.
In fact, at the 2021 DACOM Summit, Gary Gensler urged crypto platforms to work together with the SEC.
«These platforms must be registered in order to be within the investor protection framework. By the way, in the event of non-compliance with the rules set by the SEC, platforms must be ready to face the fury of regulatory bodies.».
In closing, Gary Gensler, stated that unregulated crypto markets and institutions that operate outside the regulated sphere are not going to do well.
«Complying with the SEC rules will make it possible to follow the path of success in this business sector».
I retire with this phrase by Albert Camus: «Innocent is the one who does not need to explain».