Gary Gensler, the Chairman of the Securities and Exchange Commission, has expertise in digital assets. He said he will work towards protecting investors’ plans in the coming days.
In his first in-depth discussion about the digital money frenzy, Gensler made it clear that his enthusiasm doesn’t mean he agrees.“While I’m neutral on the technology, even intrigued—I spent three years teaching it, leaning into it—I’m not neutral about investor protection,” Gensler added, reported Bloomberg.
Gensler has requested Congress to enact legislation that would allow the SEC to supervise cryptocurrency exchanges. He believes most cryptocurrencies are unregistered securities that must comply with SEC rules.
In general, he stated that technology has fueled economic advancement, and believes that digital assets would provide a boost. He believes that it’s only possible if it is regulated. Gary states an example of the automobile industry suggesting that it went mainstream only after the government laid out driving rules.
“It’s only with bringing things inside—and sort of clearly within our public policy goals—that a technology has a chance of broader adoption,” he says.
Hester Peirce, a Republican SEC commissioner, says she’s looking forward to working with Gensler. She said, “a lot of people just want more clarity.”
Gensler didn’t give a timeline for any SEC action. He has 49 non-crypto policy evaluations on his to-do list, which might stymie movement on cryptocurrency. Many are high-profile and time-consuming endeavours, such as the GameStop Corp. response.
Gensler hinted at a possible avenue for Bitcoin exchange traded funds clearance during his remarks at the Aspen Security Forum. He said that an ETF focuses on Bitcoin futures rather than the cryptocurrency itself would be acceptable.
Many in the crypto world have been eagerly awaiting a decision on Bitcoin ETFs, because they would provide an easy on-ramp for investors. During his time at MIT, Gensler spoke highly of ETFs, giving advocates confidence that he is a supporter. The SEC has yet to approve a crypto ETF, according to Peirce.