Updated 03 Sep, 2021

Crypto Could Be As Big As The Internet In The 1990s, SEC Chief Says

SEC Chief Says Crypto Could as Big as the Internet in the 1990s

Key Takeaways:

  • SEC chief Gary Gensler calls for implementation of public policy framework over crypto
  • Gensler described the emergence of digital assets resembled the Internet in the 1990s

Crypto Could Be as Disruptive as the Internet in the `90s

The Chairman of the US Securities and Exchange Commission Gary Gensler appeared in an online conference before the European Parliament. He shared his views on possible regulatory frameworks over digital assets.

He spoke to the Parliament’s Committee on Economic and Monetary Affairs on Wednesday. During this, he stressed the important role crypto assets had on the current global economic developments. Also, he highlighted the need of investor protection.

“I think the transformation we’re living through right now could be every bit as big as the internet in the 1990s,” Gary Gensler told the Committee.

He continued by saying the cryptocurrency market that now commands a valuation of over $2.2 trillion has turned into a “truly global” asset class. “It has no borders or boundaries. It operates 24 hours a day, seven days a week.”

A Public Policy Framework is Needed Over Digital Assets

As Mr. Gensler has stated previously, he stuck to his regulation narrative saying the digital asset space needed a robust public policy framework. This would provide investor protections.

Gensler called for the introduction of guardrails to the fast-evolving crypto industry. Moreover the SEC chief also highlighted Bitcoin’s environmental footprint had to be addressed adequately.

Mr. Gensler admitted Bitcoin’s vast energy consumption used in the mining process presented a “challenge” for the crypto community. He mentioned that with the rising popularity and growing adoption of Bitcoin in mainstream finance, the carbon emissions issue will become a greater concern.

Earlier in the week, Gary Gensler told the Financial Times that the looming crypto industry has become too big to exist outside of “public policy framework”.

“At about $2tn of value worldwide, it’s at the level and the nature that if it’s going to have any relevance five and 10 years from now, it’s going to be within a public policy framework,” Mr. Gensler commented. “History just tells you, it doesn’t last long outside. Finance is about trust, ultimately.”

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