Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

SEC chair warns cryptocurrency industry won't reach potential staying outside our laws

SEC chair warns cryptocurrency industry won't reach potential staying outside our laws

Chairman of the Securities and Exchange Commission Gary Gensler argued on Thursday that the cryptocurrency "field is not going to reach any of its potential if it tries to stay outside of our laws."

He specified that those laws include those pertaining to money laundering, tax compliance and the SEC’s "focus," which is investor protection.

Bitcoin and other cryptocurrencies remain unregulated within the U.S. financial system.

Gensler provided the insight on "Mornings with Maria" on Thursday as the industry has been waiting to see how the Democratic appointee will approach oversight of the crypto market, which he had reportedly said should be brought within traditional financial regulation.

On Thursday, Gensler called cryptocurrencies "innovative technologies," but also pointed out the potential risks associated with the evolving industry.

Gensler told FOX Business host Maria Bartiromo on Thursday that the SEC is "neutral" on crypto, but not neutral about investor protection.

He stressed that his agency focuses on investor protections, especially for working families.

Earlier this month, Gensler called on Congress to give the SEC more authority to better police cryptocurrency trading, lending and platforms, Reuters reported, noting that he referred to crypto markets as a "Wild West" plagued with fraud and investor risk.


Gensler reportedly said the market involves many tokens, which may be unregistered securities, and therefore, could leave prices open to manipulation and millions of investors vulnerable to risks.

In April, cryptocurrencies reached a record capitalization of $2 trillion as more investors poured into investments of digital tokens.

Bitcoin had been trading lower this week. The cryptocurrency dropped by more than 1% Thursday morning as cryptocurrencies declined. On Thursday morning the price was around $44,300 per coin and increased to around $45,700 by Thursday afternoon, according to Coindesk.

For year-to-date returns, however, bitcoin is up 56% courtesy of a strong showing by bullish traders throughout the first half of this month as prices steadily rose from $38,000 on Aug. 4 to around $48,190 on Saturday.

Rivals Ethereum and Dogecoin were trading around $3,066 and 31 cents per coin, respectively, according to Coindesk.

Concerns about cryptocurrencies were raised Tuesday by Neel Kashkari, president of the Federal Reserve Bank of Minneapolis.

"I was more optimistic about crypto and bitcoin five or six years ago," said Kashkari. "So far what I’ve seen is… 95% fraud, hype, noise and confusion."

Kashkari made the comments during an appearance at the Pacific NorthWest Economic Region annual summit in Big Sky, Montana, and reported by Coindesk.

Kashkari contrasted the open nature of the crypto field with the U.S. government’s monopoly on issuance of dollars.

"There are thousands of these garbage coins that have been created," the central banker said. "Some of them are complete fraud Ponzi schemes. They dupe people into investing money and then the founders rip them off."

Kashkari scoffed at the idea that bitcoin could serve as a safe haven from inflation, particularly the kind seen in some developing countries.

Gensler noted on Thursday that the interest in crypto "innovations" have "shown that we all want our payments to be faster and less costly."

The Senate confirmed Gensler, President Biden’s pick, as chairman of the Securities and Exchange Commission in April. Gensler was a former financial regulator and Goldman Sachs Group Inc. executive. He ran the Commodity Futures Trading Commission, a smaller regulatory sibling to the SEC, from 2009 to 2013, according to the Wall Street Journal, which added that he "has a history of shaking up the status quo."

The newspaper reported that while at the Commodity Futures Trading Commission "he steamrolled the opposition to write rules from scratch governing the markets for hundreds of trillions of dollars of derivatives," adding that "some of these complex financial instruments were blamed for the 2008-09 financial crisis."

Bartiromo asked Gensler what his priorities are in his new role as SEC chairman.

"I think markets every day are changing. Technology is rapidly changing markets and we can’t take for granted that we have the best markets," he responded. "I would like, at the end of my tenure, that we left the market even better."

He went on to say that he believes there are "definitely things we can do" to make certain parts of "the market more transparent."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×