While the SEC has sued the two largest American exchange platforms, its director Gary Gensler is campaigning. He thus claimed in an interview that there was no need for more digital currencies. This reveals the intention of the American financial policeman, who clearly wants to make the crypto ecosystem flinch.
Gary Gensler says digital currencies are useless
The SEC director shared his strong opinion in an interview with CNBC. Gary Gensler claimed that digital versions of fiat currencies are sufficient :
“Listen, we don’t need more digital currencies. We already have a digital currency, it’s called the dollar. It’s called the euro, or it’s called the yen. They are all digital now.»
In addition, he reiterated his distrust of cryptocurrency exchange platforms, believing that they fulfill too varied roles :
“These exchange platforms, they say they are exchanges, but they mix several functions. In traditional finance, you don’t see the New York Stock Exchange also financing hedge funds.»
For Gary Gensler, it is thus necessary of “protect» consumers.
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Comply with the rule… But what rule?
Gary Gensler therefore reiterated that exchanges must “complywith US regulations. But this is the root of the problem. Coinbase and other players have several times asked the US financial watchdog to clarify its rules, in order to comply. But the dialogue was broken between the two entities.
This is a fragile position for the SEC, which on the one hand displays an obvious hostility to the sector, but which leaves little room to establish a clear regulatory framework. To the point that criticism began to emerge against Gary Gensler, especially on the side of the Republican Party.
Last but not least: regulation of the sector has become a campaign issue for the United States presidential election. With on one side, Democrats rushing to break away from the sector, embarrassed by the connection between FTX and their own party. And on the other, Republicans who are champions of economic freedom.
Gary Gensler’s campaign is therefore eminently political, but its effects could be long-lasting…and rush crypto businesses to regions of the world that are more open to blockchain. The coming months will therefore be crucial.
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Source: CNBC
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