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SEC Chair Gary Gensler: Crypto Are Not Needed, Digital Fiat Currencies Are Enough

SEC Chair Gary Gensler emphasized the presence of digital currencies like the U.S. dollar

SEC Chair Gary Gensler recently shared his perspective on the current landscape of digital currencies during an interview on CNBC.

Gensler emphasized the presence of digital currencies like the U.S. dollar, euro, and yen, questioning the necessity of new tokens.

He stressed the importance of adherence to U.S. securities laws by cryptocurrency exchanges and expressed concerns about the operations of these platforms. This article delves into Gensler’s views and sheds light on the SEC’s stance regarding digital currencies.

Gensler highlighted that the world already possesses digital currencies in the form of established fiat currencies. He mentioned the U.S. dollar, euro, and yen, stating that they are already functioning digitally.

According to Gensler, the focus should be on ensuring full, fair, and truthful disclosures, which align with securities laws.

Gensler expressed apprehension about the operations of cryptocurrency trading platforms, particularly their combination of various functions.

He compared them to traditional finance, where separate entities handle different roles. Gensler cited the example of Binance, referring to allegations made by the SEC against the platform and its sister organization involved in wash trading. He emphasized the need for controls and compliance to avoid deceptive practices.

SEC Lawsuit Against Coinbase: Gensler addressed the SEC’s lawsuit against Coinbase, noting the vast number of tokens available for trading on the platform—approximately 16,000.

He clarified that the SEC’s objective is not to stifle innovation but rather to ensure compliance with securities laws, prioritizing investor protection.

Enforcement Actions and Investigative Process: Gensler discussed the timeline of enforcement actions, emphasizing that they require time for thorough investigations following facts and laws.

He expressed pride in the dedicated investigative teams at the SEC who diligently build cases to protect investors and maintain market integrity.

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