Gary Gensler Says The US Doesn’t Need More Digital Currency
- SEC Chairman Gary Gensler has stated that the United States doesn’t need more digital currency.
- Gensler has alleged that crypto’s business model is built on non-compliance with U.S. securities laws.
- The SEC Chair believes that the US Dollar is the only digital currency the country needs.
Gary Gensler, the man at the helm of the U.S. Securities and Exchange Commission (SEC), appeared in an interview with CNBC’s Squawk on the Street earlier today to comment on the recent developments in the crypto market, including the two major enforcement actions initiated by his agency against Coinbase and Binance over the past 24 hours.
Gary Gensler: US Dollar Is The Only Digital Currency We Need
When asked to comment on the crypto industry’s repeated demands for regulatory clarity, SEC Chair Gary Gensler claimed that clarity had been around for years and that crypto entities operating in the United States have to come into compliance with the country’s securities laws in the interest of investor protection. He added that the crypto trading platforms in the country were commingling several functions including operating as an exchange, hedge fund, market maker, etc.
Speaking on the most recent lawsuit, filed against American crypto giant Coinbase, Gary Gensler pointed out that the crypto exchange offered 16,000 crypto tokens for trading to its customers. Chair Gensler then called into question the utility and use cases of those tokens and their real underlying value.
We don’t need more digital currency. We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen; they’re all digital right now. We already have digital investments.”
Gary Gensler alleged that the part of the crypto industry involving incumbents like Coinbase and Binance is built on a business model of non-compliance with United States securities laws. The SEC Chair took particular issue with the commingling of functions that would not be allowed in traditional finance. “The investing public has the benefit of U.S. securities laws. Crypto should be no different,” Chair Gensler added.
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