The crypto space might see more regulatory clarity as the United States Securities and Exchange Commission (SEC) chairman Gary Gensler shows deep interest in digital money; DeFi, stablecoins, crypto exchanges, initial coin offerings, trading venues, lending platforms, custody, and exchange-traded funds included.
In an interview with Bloomberg, Gensler pointed out his concerns on the risks associated with the crypto industry, and how to place stricter regulation for the $1.6 trillion digital-asset markets in order to protect investors from fraud.
He also pointed out that digital assets could have far more chances of adoption and would bring about economic growth if only it is guided by the necessary policies.
Even though Gensler taught a cryptocurrency course at MIT, he revealed his stance on crypto and the motive for his interest, saying,
While I’m neutral on technology, even intrigued – I spent three years teaching it, leaning into it – I’m not neutral about investors protection.
He continued, “If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud.”
While regulators speculate that the SEC does not have any relationship with the crypto space stating that Bitcoin should be classified as a commodity rather than a security, Gensler thinks otherwise.
While withholding information on when the SEC will start implementing regulatory policies on crypto, he believes that digital asset staking platforms and the DeFi sector should specifically be regulated since funds and interest returns are involved.
Gensler also did not disclose whether the SEC would approve a bitcoin ETF, a subject the public had speculated on when he was appointed to serve as the 33rd SEC chair after a 53-45 vote.
Using his position as a professor at MIT Sloan School of Management who taught digital currencies and a blockchain course that included a reading of the Bitcoin Whitepaper, the public thought he would likely approve a Bitcoin ETF from either of the different proposals submitted by several firms like VanEck, Fidelity, WisdomTree Investments, or even Galaxy Digital.
