Gary Gensler, the new chairman of the U.S. Securities and Exchange Commission (SEC), said that Bitcoin is a scarce but extremely unstable value store. He called for more supervision and updating of seemingly outdated rules to provide investors with more Inclusive protection.
SEC Chairman Gary Gensler stated in CNBC’s “Financial Forum” that he believes that Bitcoin is a “scarce store of value”, which is different from other “encrypted targets” that “are indeed marketable securities.” He further commented that more protection should be provided for investors who want to exchange bitcoin for volatility.
“This is a digital and scarce value reserve, but it is highly unstable,” Gensler said when talking to CNBC about Bitcoin. “There are still some investors who want to trade it and benefit from its volatility. In some cases, it’s just because it has a lower relevance to other markets. I think we need more investor protection measures in the crypto market.”
Gensler, who has taught blockchain, cryptocurrency and other emerging financial technologies at the Massachusetts Institute of Technology (MIT), described the lack of investor protection in bitcoin transactions as an “institutional gap.”
He went on to point out that there are currently limited agencies for anti-fraud and anti-manipulation, and no federal agency “really develops a system for crypto exchanges.”
Later, Gensler, who once regarded Bitcoin and cryptocurrencies as catalysts for innovation and change, added that he believes that the SEC should remain “technologically neutral” in terms of market innovation.
According to Gensler, many cryptocurrencies or so-called cryptocurrencies can be traded like assets, but they are actually securities and should fall within the purview of the SEC.
“To a certain extent, the Securities and Exchange Commission has a lot of power. Many of the cryptographic targets are indeed securities, and I will not call them cryptocurrencies for the time being.”
Gensler also pointed out that social media has the ability to manipulate the public in financial markets and revealed that he plans to prevent this from happening.
“We need to update and optimize our rules to ensure that retail investors and any individual have a say in the First Amendment and that they will not mislead the public, nor will they mislead the public and manipulate the market.”
The announcement comes as hundreds of banks in the United States plan to support Bitcoin transactions, and Bitcoin adoption has soared. According to reports, NYDIG has partnered with FIS to enable hundreds of U.S. banks to allow customers to buy, sell and hold Bitcoin.
Provide investors with more inclusive protection by adding more regulations and updating seemingly outdated rules.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.