Saturday, October 1

SEC Chairman and Former Chairman See Productive Future for Bitcoin (Under Regulation)

The president of the United States Securities and Exchange Commission (SEC), Gary Gensler and his predecessor Jay Clayton, agreed, saying that bitcoin (BTC) and the rest of the cryptocurrencies have a productive future, albeit under strict regulations.

The two shared a panel during the Digital Asset Compliance and Market Integrity Summit. There Gensler express that cryptocurrency trading or lending platforms “whether they call themselves centralized or decentralized, are an important place for public policy and investor protection.”

The official said that in case any company or platform I could not agree with the SECThey are going to sue companies that are not registered with the government agency.

“I think a better approach for these platforms is to work to register within the law,” Gensler said.

He also said that cryptocurrencies are used “to a great extent” to raise money for entrepreneurs, so they fit into “time-tested definitions under an investment contract and are therefore subject to securities laws.” .

A position that is similar to that of Clayton, who was in the SEC from 2017 to December 2020, when he came to say that bitcoin was not a security, but rather it was much more a means of payment and a store of value. He also said that his motivation to heavily regulate bitcoin was out of fear that investors would submit to the “unnecessary risks” involved in holding this asset in a Bitcoin ETF.

Clayton and Gensler turned out to have more matches than differences regarding bitcoin. Source: CryptoCompare.

Gensler’s position could come as a surprise, because the bitcoiner community had the impression that it would be more open towards companies that are part of the cryptocurrency industry. This, motivated to the fact that the official was a tenured professor on Bitcoin, cryptocurrencies and blockchains at the Massachusetts Institute of Technology (MIT).

He even went so far as to say that a form of digital money like bitcoin, without a single central authority, represents an innovation.

The difference between Gensler and Clayton is ETFs

Clayton stepped down as head of the regulator and left to be remembered as the one who never approved a bitcoin ETF. The body rejected nine projects, contrary to the current administration of the SEC.

Gensler and the regulator did make progress in that regard. Last october was approved the first bitcoin futures ETF in the United States, a fact reported by CriptoNoticias.

The ETF belonging to the firm ProShares, trades on the stock market futures contracts that oblige the parties to buy or sell an asset (bitcoin) within a specified period, but with an agreed price.

So far, the regulator has authorized three exchange-traded funds, based on BTC futures. Among them, one belonging to fund manager VanEck.