- Gary Gensler doubts Bitcoin or crypto will be widely used as currency
- Gensler states crypto must prove its value through use and disclosure
- SEC remains neutral, leaving it up to investors to determine crypto’s utility
The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, spoke at the NYU School of Law in Manhattan, also addressing the topic of crypto.
When asked about the value of cryptocurrencies, Gensler said he considers it unlikely that Bitcoin (BTC) or other cryptos will ever be widely used as a form of payment. Rather, what could happen is that they will be seen more as a store of value.
Gary Gensler’s Words
Here are his words regarding viewing crypto as currency:
“So it’s unlikely this stuff is going to be a currency. It’s going to have to show its value through disclosure, through use. … The same way you pick amongst the thousands of securities that are listed on the stock exchange.”
In practice, for Gensler, it will be the investors who decide whether there is utility in a particular cryptocurrency. On the contrary, the SEC Chairman said that the agency is “neutral” in this regard.
Furthermore, citing various monetary principles throughout history, Gensler also stated that generally, there tends to be one currency for each geographic economic state.
However, Gensler’s speech also cast a negative light on crypto, highlighting scams and the arrests and convictions of their perpetrators. All of this as a way to defend against accusations of excessive power by the agency.
Conclusion
In conclusion, Gary Gensler clarified that the future of cryptocurrencies will depend on their ability to demonstrate utility and value to investors.
While remaining skeptical of their use as currency, the SEC Chairman reiterated that the agency remains neutral and is committed to protecting consumers from fraud and abuse present in the sector.
