Gary Gensler’s Critique: Crypto Tokens Lack the Basic Qualities of Currency
Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), has offered an explanation for the agency’s litigation-heavy approach to regulating the digital asset industry. During a hearing before the House Financial Services Committee, Gensler addressed concerns from members of Congress regarding the regulatory framework for “crypto tokens.”
Congressman John Rose questioned Gensler about why the SEC is pursuing a litigation-heavy strategy despite lacking expertise in the field. Gensler responded that the reason is the prevalence of fraud and non-compliant behavior in the digital asset industry. He emphasized the risks faced by the American public on platforms that often trade against their customers.
Gensler also clarified that crypto tokens are not currencies and do not fulfill the three functions of a currency — store of value, unit of account, and medium of exchange. He acknowledged that they might eventually serve these purposes but not in the immediate future.
The SEC’s legal battles with major digital asset companies, including Binance and Coinbase, have drawn criticism from the public and members of Congress. Congressman Warren Davidson proposed the “SEC Stabilization Act,” which aims to eliminate the position of chairman within the SEC and add a sixth commissioner to ensure balanced representation from political parties.
Despite the criticism, Gensler reiterated that the SEC’s actions are aimed at protecting the American public. He emphasized the risks and harm faced by individuals on platforms that commingle funds and trade against their customers.
Overall, Gensler’s testimony suggests that the SEC’s litigation-heavy strategy is driven by concerns over fraud and non-compliance in the digital asset industry. The agency aims to protect the public from potential risks and harm posed by these platforms. However, the SEC’s approach has faced criticism from the public and members of Congress who see it as driven by political motivations..
#Gary #Genslers #Critique #Crypto #Tokens #Currency
Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), has offered an explanation for the agency’s litigation-heavy approach to regulating the digital asset industry. During a hearing before the House Financial Services Committee, Gensler addressed concerns from members of Congress regarding the regulatory framework for “crypto tokens.”
Congressman John Rose questioned Gensler about why the SEC is pursuing a litigation-heavy strategy despite lacking expertise in the field. Gensler responded that the reason is the prevalence of fraud and non-compliant behavior in the digital asset industry. He emphasized the risks faced by the American public on platforms that often trade against their customers.
Gensler also clarified that crypto tokens are not currencies and do not fulfill the three functions of a currency — store of value, unit of account, and medium of exchange. He acknowledged that they might eventually serve these purposes but not in the immediate future.
The SEC’s legal battles with major digital asset companies, including Binance and Coinbase, have drawn criticism from the public and members of Congress. Congressman Warren Davidson proposed the “SEC Stabilization Act,” which aims to eliminate the position of chairman within the SEC and add a sixth commissioner to ensure balanced representation from political parties.
Despite the criticism, Gensler reiterated that the SEC’s actions are aimed at protecting the American public. He emphasized the risks and harm faced by individuals on platforms that commingle funds and trade against their customers.
Overall, Gensler’s testimony suggests that the SEC’s litigation-heavy strategy is driven by concerns over fraud and non-compliance in the digital asset industry. The agency aims to protect the public from potential risks and harm posed by these platforms. However, the SEC’s approach has faced criticism from the public and members of Congress who see it as driven by political motivations..
#Gary #Genslers #Critique #Crypto #Tokens #Currency
