In an interview with CNBC, Securities and Exchange Commission (SEC) Chair Gary Gensler discussed his views on cryptocurrencies and his tenure at the agency before he steps down on January 20.
According to Gensler, the SEC has never thought of Bitcoin as a security. He called Bitcoin a “highly speculative and volatile asset” but added that it was of wide global interest, comparing it with gold. He also said while Bitcoin could continue to be of importance in global markets, others might rise in the future.
Gensler noted that many of these cryptocurrency projects are going to need to have real uses and strong basics if they are to survive. Without these, he warned, they probably will not last. He also said he has never owned any cryptocurrency and has held this position for the last seven or eight years.
During his time as SEC Chair, Gensler was hard on regulating cryptocurrency. Under his leadership, the SEC started close to 100 enforcement actions in an attempt to protect investors and prevent fraud.
Gensler said many of the crypto exchanges were not just platforms but also traded against their own customers, which had led to fraud and manipulation problems in the industry.
The SEC Chair referred to his predecessor, Jay Clayton, who had filed some 80 cases to help protect investors in the crypto area. Gensler emphasized that the job of the SEC is to enforce the laws and make things clear while saying that Bitcoin is not a security. He did note, however, that other cryptocurrencies might be treated differently based on how they are set up.
As Gensler prepares to exit, Paul Atkins is set to take over. Atkins has expressed support for clear rules that will not stifle new ideas in the crypto world. On the other hand, Gensler has been very critical of the high-risk nature that many crypto projects assume, comparing them to high-risk investments.
Gensler also fielded questions about his resignation. He said that the SEC would go on doing its job irrespective of who is at its helm. He added, “We have an important duty, and we are going to fulfill that duty all the way through regardless of who the leadership is.”
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