SEC chair warns most crypto tokens lack compliance and face uncertain futures, while bitcoin, compared to gold, stands as a speculative but enduring asset.
SEC Chief: Bitcoin Clear but 15,000 Crypto Tokens Face Uncertain Fate
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SEC Chief: Bitcoin Sets the Standard While Crypto Tokens Face Tougher Laws
Outgoing U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler defended his regulatory stance on cryptocurrency in an interview with CNBC on Tuesday. Gensler described the cryptocurrency market as plagued by speculation and a lack of compliance with key financial laws. He stated:
This field, the crypto field, a highly speculative field, has not been compliant with various laws, whether it’s any money laundering laws, sanctions laws, or in our case, securities laws.
He emphasized that while bitcoin itself is not classified as a security, most other tokens fail to meet disclosure requirements. “Now, bitcoin’s not a security, but these 10,000 or 15,000 other tokens, the investing public has been hurt over the many years,” he claimed.
Gensler acknowledged bitcoin’s growing role in global financial markets, comparing it to gold as a store of value. The SEC chairman stressed:
I think that bitcoin is a highly speculative, volatile asset. But with 7 billion people around the globe, 7 billion people want to trade it. Just like we do have gold for 10,000 years, we have bitcoin. It might be something else in the future as well.
However, he warned that other cryptocurrencies face an uncertain future unless they prove their utility. “These other thousands of projects need to show their use case and show that they actually have fundamentals underlying them or they won’t persist,” he added.
Addressing criticism that the SEC focused on enforcement rather than clear guidelines for the industry, Gensler stressed the importance of existing laws and transparency. “This crypto field seems to trade mostly on sentiment and much less on fundamentals. But if the fundamentals are there, and I say if, then make the proper disclosures under the securities laws. That’s the basic bargain,” he said. Despite speculation about his personal views, Gensler remained consistent, stating: “I’ve never owned any of these. And I’ve been consistent for seven or eight years on this.” His remarks underscored his firm belief in safeguarding investors through strict adherence to regulations.
