Updated 22 Sep, 2021

Bitcoin Has Led to Change, but Needs Regulation, Says Gary Gensler

document with person ticking it off looking at Bitcoin coin on a purple backgroundBitcoin Has Led to Change, but Needs Regulation, Says Gary Gensler

Key Takeaways:

  • Gary Gensler speaks on the importance of cryptocurrency regulations
  • He admits bitcoin is a catalyst for change but must be regulated so it could “last long”

SEC Chair Gary Gensler Says Bitcoin Has Led to Change

The Chairman of the Securities and Exchange Commission, Gary Gensler, recognized the importance and the potential for change in bitcoin. He also stressed that if cryptocurrencies were to continue growing, they had to be regulated.

Gary Gensler spoke during an online event “The Path Forward” hosted by The Washington Post. During this event, he provided his take on bitcoin and the fast-emerging cryptocurrency space.

“I’d like to speak clearly, if I can. I do think this technology is a very interesting one,” Mr. Gensler said. “Satoshi Nakamoto has led to change. [Satoshi’s invention] is pushing at the side of central banks around the globe to reconsider how to provide payment systems. It’s pushing on the side as a catalyst for change in finance.”

The SEC chair admitted he’s personally interested to be involved in crypto as he had previously led courses on bitcoin and blockchain technology.

“I taught this and studied it for several years at MIT and really wouldn’t have dedicated my time If I didn’t think it was interesting and innovative.”

To Last Long, Bitcoin Must be Regulated, Says Gensler

Moreover, Mr. Gensler emphasized on the rising need for a regulatory framework over crypto trading and investing. According to him, regulation will provide at least a basic level of protection for market participants who dive into the nascent industry.

“At the same time, I don’t think technologies last long outside of a social and public policy framework. In this case, we have to ensure for investor and consumer protection.”

He did acknowledge the growth prospects for bitcoin and other digital currencies. However, he also said that it is important that they “do not undermine the stability of the system.”

To do that, he argues, crypto assets must be brought inside the public policy framework.

As the head of the SEC, Gary Gensler is yet to introduce regulatory guidelines over the cryptocurrency market.

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