New SEC Chairman Gensler Recognizes Bitcoin as a “Scarce Reserve of Value”

SEC Chairman Gary Gensler said on CNBC’s “Financial Forum” that he believes bitcoin is a “scarce reserve of value,” unlike other “crypto underlyings” that are “really marketable securities.

The new chairman of the Securities and Exchange Commission (SEC), Gary Gensler, said bitcoin is a scarce but highly volatile store of value and called for more inclusive investor protections by adding more regulation and updating seemingly archaic rules.

Speaking on CNBC’s “Financial Forum,” SEC Chairman Gary Gensler said he believes bitcoin is a “scarce reserve of value” unlike other “crypto instruments” that are “really marketable securities. “crypto”. He further commented that more protection should be provided for investors who want to trade bitcoin for volatility.

New SEC Chairman Gensler Recognizes Bitcoin as a "Scarce Reserve of Value"

“It’s a digital, scarce reserve of value, but highly volatile,” Gensler said of bitcoin while speaking with CNBC, “and there are investors who want to trade it and benefit from its volatility, in some cases, simply because it’s less correlated with other markets correlation is low. I think we need more investor protections in the crypto market.”

Gensler, who has taught blockchain, cryptocurrencies and other emerging financial technologies at the Massachusetts Institute of Technology (MIT), described the lack of investor protection in bitcoin trading as an “institutional gap.

He goes on to note that there are currently limited anti-fraud and anti-manipulation agencies, and no federal agency has “really developed a system for crypto exchanges.

Later, Gensler, who has seen bitcoin and cryptocurrencies as a catalyst for innovation and change, added that he believes the SEC should remain “technology neutral” when it comes to market innovation.

New SEC Chairman Gensler Recognizes Bitcoin as a "Scarce Reserve of Value"

According to Gensler, many crypto markers or so-called cryptocurrencies can be traded like assets, while they are actually securities and should fall under the purview of the SEC.

“To some extent, the Securities and Exchange Commission has a lot of power. A lot of crypto markers are indeed marketable securities, and I wouldn’t call them cryptocurrencies for now.”

Gensler also pointed to the ability of social media to manipulate the public in financial markets and revealed his plans to prevent this from happening.

“We need to update and optimize our rules to make sure that retail investors and any individual has a First Amendment voice to make sure that they don’t mislead the public and they don’t mislead the public and manipulate the markets.”

The news comes as bitcoin adoption soars as hundreds of U.S. banks plan to support bitcoin trading. NYDIG has reportedly partnered with FIS Corp. to enable hundreds of U.S. banks to enable customers to buy, sell and hold bitcoin.

by adding more regulation and updating seemingly archaic rules to provide more inclusive protection for investors.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/new-sec-chairman-gensler-recognizes-bitcoin-as-a-scarce-reserve-of-value/
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