The chairman of the US SEC is clear about the encryption rules for Satoshi Nakamoto’s innovation

Summary before the article:

US Securities and Exchange Commission (SEC) Chairman Gary Gensler said that Satoshi Nakamoto’s innovation is real. “It has been and may continue to be a catalyst for changes in the financial and monetary fields,” he said.

Satoshi Nakamoto’s innovation is real

SEC Chairman Gary Gensler spoke about Bitcoin and cryptocurrency regulation at the Aspen Security Forum last week, where he outlined his plan.

“His innovation has stimulated the development of encrypted assets and underlying blockchain technology,” Gensler said of Satoshi Nakamoto, adding that “crypto asset classes have expanded” and are now worth about $1.83 trillion.

Note that before being identified as the head of the SEC, during his time at MIT, he researched, wrote, and taught topics such as Bitcoin, cryptocurrency, and blockchain technology. Gensler believes:

In this work, I began to believe that, despite a lot of hype disguised as reality in the field of encryption, Satoshi Nakamoto’s innovation is real. In addition, it has been and will continue to be a catalyst for changes in the financial and monetary fields.

Unlike fiat currencies, Gensler said: “In essence, Satoshi Nakamoto is trying to create a form of private money without a central intermediary, such as a central bank or a commercial bank.” However, he believes that at present “despite this, there is no one. A single encrypted asset can broadly satisfy all functions of a currency.”

The chairman elaborated that encrypted assets “are a highly speculative store of value” and stated that they “are not used as a unit of account in large quantities.” He further believes that:

We also haven’t seen encryption used as a medium of exchange. In terms of its use in this way, it is usually to circumvent our anti-money laundering, sanctions, and tax laws. As we saw in Colonial Pipeline recently, it can also be ransomware through ransomware.

Gensler pointed out that he was “technologically neutral,” but emphasized that in terms of cryptocurrency regulation, “I am by no means public policy neutral.”

He continued: “As new technologies emerge, we need to ensure that we are achieving our core public policy goals. In the financial sector, this is about protecting investors and consumers, preventing illegal activities, and ensuring financial stability.”

At the same time, the former MIT professor claimed that the encryption rules are clear, emphasizing that many tokens are “provided and sold as securities.” Regarding whether something is a security, he described:

There is actually a lot of clarity in this regard… Certain rules related to crypto assets have been well resolved. The test to determine whether an encrypted asset is a security is clear.

However, many people disagree that the SEC Chairman’s rules are clear, including Ripple CEO Brad Garlinghouse, who is currently being sued by the agency for selling XRP.

The CEO of Ripple said: “In my opinion, if you are dealing with an alcoholic who does not want to admit that he has an alcohol problem, say that we have certainty, we have certainty, just like an alcoholic saying’I don’t have a problem’. This is the elephant in the room.”


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