Statements by former SEC chairman Gary Gensler are once again drawing attention to the differences between Bitcoin and other crypto coins. His comments come at a time when the Bitcoin (BTC) price is moving strongly, so his recurring warning once again raises the question of how fundamental the current interest actually is.
Gensler puts Bitcoin in a separate category
In the interview with Bloomberg, Gensler calls Bitcoin a category in itself. According to him, the coin is “closer to a commodity”, although he immediately adds that this does not apply to the thousands of other crypto coins. He describes this as “highly speculative”. Many of these currencies do not yield dividends and, according to him, do not offer the usual returns that investors are familiar with from traditional markets.
Gensler refers to warnings that he has often expressed as a supervisor. According to him, the fascination of the general public for cryptocurrencies says little about the underlying value. “You have to ask yourself what the fundamentals are.” “What lies underneath,” he says. “The public must remain aware of those risks.”
Years of battle between Ripple and the SEC
During his time at the helm of the SEC, Gensler pursued a robust enforcement policy. Major US platforms faced lawsuits or fines, including Coinbase, which was charged for operating as an unregistered exchange, broker and clearing agency, according to the regulator. Kraken’s strike program was also halted after a $30 million settlement.
The lengthy lawsuit against Ripple was along the same lines, with the SEC stating that XRP should be viewed as a security. That case became an important symbol of the crackdown and showed how far the SEC was willing to go to enforce its own interpretation of the rules.
According to critics, this made crypto unnecessarily politically charged, but Gensler sees it differently. According to him, it is not about parties or ideologies but about “fairness” in the capital markets. “When you buy a stock or bond, you want to get certain information and the same treatment as major investors,” he says. That principle should be no different for crypto.
New course under Atkins
Since Paul Atkins took over as chairman, the SEC has chosen a different tone. He places less emphasis on lawsuits and focuses instead on providing clear rules that companies can work with in advance. According to market followers, this provides more clarity and less tension in the sector.
When asked why crypto is increasingly moving towards traditional financial structures, Gensler points to a broader development. According to him, the financial sector has been seeking centralization since ancient times. He therefore thinks it is logical that an originally decentralized ecosystem is now becoming more integrated with existing markets. He points to, among other things, the introduction of spot Bitcoin ETFs during his presidency.
Source: https://newsbit.nl/gensler-onderscheidt-bitcoin-van-andere-cryptos-en-waarschuwt-voor-speculatie/
