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SEC Chair Gary Gensler: The US Doesn’t Need Cryptocurrency
In a recent interview with CNBC, SEC Chairman Gary Gensler expressed his strong opinion on the operations of cryptocurrency exchanges in the United States. Gensler’s comments came shortly after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, the country’s largest crypto exchange. According to Gensler, the entire business model of the crypto industry is “built on non-compliance.” This article delves into Gensler’s perspective on the matter and examines his views on the necessity of digital currencies in the United States.
The Criticism of Crypto Exchanges
Gensler highlighted concerns about the way crypto exchanges operate, emphasizing that they often “commingle a number of functions.” He drew a parallel to traditional finance, suggesting that such commingling would not be acceptable in conventional financial markets. To illustrate his point, Gensler mentioned the hypothetical scenario of the New York Stock Exchange simultaneously operating a hedge fund. This criticism raises questions about the regulatory framework surrounding crypto exchanges and their compliance with existing financial laws.
