Gary Gensler Lures Crypto With Honey And Vinegar<\/span><\/h2>\n
The topic of the day, of course, is, are cryptocurrencies securities? And the head of the Securities Exchange Commission appeals to the exchanges and related platforms instead of aiming at the projects themselves. Interesting strategy. Gary Gensler explains:<\/span><\/p>\n
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\u201cIf these tokens\u2013and there\u2019s five- or six thousand different projects\u2013if these tokens have the attributes of an investment contract or a note, or have attributes of equities or bonds. And in essence, one of the core issues is that there are platforms: trading platforms where you can buy and sell these tokens; lending platforms, where you can earn a return on these tokens that have not just dozens of tokens but sometimes hundreds or thousands of tokens. And it\u2019s highly likely that they have on these platforms, securities, investment contracts, or notes or others, that fit the definition of security. Those platforms should come in, they should figure out how to register, be an investment\u2013investor protection remit.\u201d<\/span><\/p>\n<\/blockquote>\n
Well, good luck with that. What will happen if people don\u2019t obey your organization\u2019s mandate, Mr. Gensler?<\/span><\/p>\n
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\u201cI do really fear that we\u2019ll keep bringing these enforcement cases, but there\u2019s going to be a problem. There\u2019s going to be a problem on lending platforms or trading platforms. And frankly, when that happens, I think a lot of people are going to get hurt.\u201d<\/span><\/p>\n<\/blockquote>\n
We\u2019re not saying that Gary Gensler is threatening you. He\u2019s obviously speaking about the risks of unregulated markets. However, \u201c<\/span>there\u2019s going to be a problem<\/span><\/i>\u201d and \u201c<\/span>a lot of people are going to get hurt.<\/span><\/i>\u201d That\u2019s what the man said.<\/span><\/p>\n
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Gary Gensler (SEC):
\u2013 is going after the “5000 or 6000 PROJECTS that are raising money from the public [..] anticipating profit”
\u2013 views #Bitcoin<\/a> as a “digital, scarce STORE OF VALUE”https:\/\/t.co\/aw9aQwQ0M6<\/a><\/p>\n
\u2014 PlanB (@100trillionUSD) September 21, 2021<\/a><\/p>\n<\/blockquote>\n
The Definition Of Investment Contract<\/span><\/h2>\n
Here, Gensler is speaking directly to host David Ignatius:<\/span><\/p>\n
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\u201cIf you, David, ask some of the listeners from this program to give them your money, something of value. And they were relying on you, David, with maybe five or ten other entrepreneurs and computer scientists to build a platform\u2013build a platform, that token and so forth, and they were giving it to you with an anticipation of profits. Our Supreme Court long ago said that\u2019s an investment contract.\u201d<\/span><\/p>\n<\/blockquote>\n
And it\u2019s hard to argue with that. However, it sounds threatening when you mix it with this:<\/span><\/p>\n
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\u201cSo, public money has a certain place around the globe. Private monies usually don\u2019t last that long. So, I don\u2019t think there\u2019s a long-term viability for five- or six thousand private forms of money. History tells us otherwise. So, in the meantime, I think it\u2019s worthwhile to have an investor protection regime placed around this.\u201d<\/span><\/p>\n<\/blockquote>\n
The newspapers went with that phrase, \u201c<\/span>I don\u2019t think there\u2019s a long-term viability for five- or six thousand private forms of money<\/span><\/i>,\u201d for their headlines. The markets tumbled. Some people argued that, in context, the phrase wasn\u2019t that menacing. Maybe, but, if you mix it with something like this:<\/span><\/p>\n
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\u201cAnd I think at $2 trillion, 5- or 6,000 projects, that it would be better to be inside investor-consumer protection, inside the tax compliance and anti-money laundering and financial stability.\u201d<\/span><\/p>\n<\/blockquote>\n
A crystal clear picture of the SEC\u2019s intentions and politics emerges.<\/span><\/p>\n
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\ud83e\udd2f pic.twitter.com\/XUlSV31jEw<\/a><\/p>\n
\u2014 Eduardo Prospero (@edprospero23) September 23, 2021<\/a><\/p>\n<\/blockquote>\n
What Does Gary Gensler Think About Bitcoin?<\/span><\/h2>\n
According to the Securities Exchange Commission, Bitcoin is a commodity. Its unique characteristics make it so. Also, there\u2019s Gary Gensler\u2019s reverence for Satoshi Nakamoto and the fact that he taught a cryptocurrencies class at MIT. Because of all that, Bitcoiners seem to feel like they\u2019re exempt from the SEC\u2019s wrath. Are they, though?<\/span><\/p>\n
When host David Ignatius asked about Bitcoin\u2019s effectiveness as a store of value, Gary Gensler answered:<\/span><\/p>\n
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\u201cI mean, holding a highly volatile asset\u2013bitcoin is that. It\u2019s a digital, scarce, I would even say speculative store of value. To hold appropriate capital, if it\u2019s on a bank\u2019s balance sheet, which seemed to fit into the remit that we\u2019ve had in the past, that there be appropriate shock absorbers against the potential loss.\u201d<\/span><\/p>\n<\/blockquote>\n
That doesn\u2019t sound like a Satoshi Nakamoto fan. Or like he appreciates Bitcoin at all. Flat out, what do you think about Bitcoin as an innovation Mr. Gensler?<\/span><\/p>\n
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\u201cI think it\u2019s been a catalyst for change. Nakamoto-san\u2019s innovation, not only bitcoin as the first sort of one but this whole distributed ledger technology has been a catalyst for change that, around the globe, central banks and the private sector are looking in on how we can enhance our payment systems, and enhancing our payment systems to make them 24 hours a day, 7 days a week, real time, at lower cost.\u201d<\/span><\/p>\n<\/blockquote>\n
He did everything but say \u201cBlockchain, not Bitcoin.\u201d That slogan might\u2019ve been phased out, but apparently, the idea remains. That\u2019s actually what presumed pro-crypto regulator Gary Gensler thinks that Bitcoin brought to the world. A catalyst for the central banks and the private sector to step up their game. Wow.<\/span><\/p>\n
Related Reading | This Is What Gensler\u2019s Confirmation Could Mean For XRP<\/a><\/strong><\/em><\/p>\n
$\"BTCUSD$ <\/p>\n