The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has described the “very real economic difference” between fiat currencies like the dollar and cryptocurrencies like bitcoin. The head of the SEC pointed out, “You have a whole central bank, and support for one currency, generally per economic region,” noting that bitcoin doesn’t have the same.
Gensler Gary weighs in on ETFs, Bitcoin, and the US dollar
In an interview with CNBC on Wednesday, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), covered a wide range of subjects, including ransomware, ethereum exchange-traded funds (ETF) prospects, bitcoin, and the development of spot bitcoin ETFs. In opposition to bitcoin, he also maintained the value of fiat currencies like the US dollar.
When Jamie Dimon, the CEO of JPMorgan Chase, said that the real uses for bitcoin are in the criminal, drug trafficking, money laundering, and tax avoidance industries, Gensler was questioned about it. Additionally, Dimon declared that if he were the government, he would outlaw cryptocurrencies. Bitcoin is “the leading market share in ransomware, and that’s publicly known,” Gensler retorted, calling it “the token of choice for ransomware.”
In response to CNBC Anchor Joe Kernen drawing attention to the comparatively small amount of money laundering linked to bitcoin versus the substantial amount in U.S. dollars, Gensler explained: “The U.S. dollar, the euro, or the yen, you have the whole society using it as a medium of exchange.” We purchase our coffee cups. We receive payment in euros, yen, or dollars. The chairman of the SEC went on:
Additionally, unlike us [with bitcoin], you have an entire central bank and support for a single currency, usually per economic region. Thus, the economic disparity is genuine.
This is one of the draws,” Kernen cut Gensler short, pointing out that the decentralized nature of bitcoin prevents the existence of “a profligate central bank.”
Gensler swiftly shot back, saying, “It’s not that decentralized.” He emphasized, saying, “Not decentralized because look how finance tends toward centralization since antiquity,” indicating he was not talking about ETFs becoming centralized. Now, what have we got? There are only a few three to six main “crypto” companies.
“How many times are people on this show that say: ‘I don’t want to invest in something because of how the books and records are kept?'” Gensler then asked the CNBC host. It is merely a ledger for bookkeeping. That’s everyone’s investing option, Gensler retorted in response to Kernen pointing out that “the bitcoin bulls say they trust it a lot more than the central bank that enables the fiscal authorities to spend money to the tune of $33 trillion.”
In response to a question concerning applications of bitcoin and cryptocurrency other than ransomware that explain its appeal to so many, Gensler said, “Speculative investing.”
The SEC approved 11 spot bitcoin ETFs around a month ago. With the recent spike in price beyond $50,000 and the substantial inflows into these ETFs, the chairman was questioned about his view for the bitcoin market. “Look, we prioritize protecting investors and, of course, helping issuers get capital. Thus, Gensler explained, “We’ve had comparable products in gold and silver, ETFs.”
A group of roughly eleven people was accepted at once. This wasn’t the first method to use bitcoin to convey or purchase a risk. But we’re merit neutral, as we like to say. This was not an endorsement of the bitcoin that was in existence. All that matters in these exchange-traded vehicles is how you trade it.