Did The SEC’s Gary Gensler Threaten Crypto And DeFi In The WaPo Interview?
23 Septembre 2021 - 10:21AM
NEWSBTC
Come on, Gary Gensler didn’t threaten the industry. Of course he
didn’t, but… maybe he did? If a mafia boss repeated the exact same
words, there would be no doubt. And we’re quoting him verbatim.
This is exactly what the Securities Exchange Commission’s
Chairman told The Washington Post. They had Gary Gensler as a guest
in their “The Path Forward” series. The host was David Ignatius.
They talked about “those five- or six thousand projects” that are
“raising money from the public.” Related Reading | Erik Voorhees:
Selling Unregistered Securities is a Made up Crime Yesterday, we
focused on Gary Gensler’s comments about stablecoins and
Evergrande. Today, the topic is fighting words… or are they? Read
what he had to say and decide for yourself. Gary Gensler Lures
Crypto With Honey And Vinegar 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: “If these tokens–and there’s five- or six
thousand different projects–if 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’s 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–investor protection remit.” Well, good luck with that.
What will happen if people don’t obey your organization’s mandate,
Mr. Gensler? “I do really fear that we’ll keep bringing these
enforcement cases, but there’s going to be a problem. There’s 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.” We’re not saying that Gary Gensler is threatening you.
He’s obviously speaking about the risks of unregulated markets.
However, “there’s going to be a problem” and “a lot of people are
going to get hurt.” That’s what the man said. Gary Gensler (SEC):–
is going after the "5000 or 6000 PROJECTS that are raising money
from the public [..] anticipating profit"– views #Bitcoin as a
"digital, scarce STORE OF VALUE"https://t.co/aw9aQwQ0M6 — PlanB
(@100trillionUSD) September 21, 2021 The Definition Of Investment
Contract Here, Gensler is speaking directly to host David Ignatius:
“If 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–build 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’s an investment
contract.” And it’s hard to argue with that. However, it sounds
threatening when you mix it with this: “So, public money has a
certain place around the globe. Private monies usually don’t last
that long. So, I don’t think there’s a long-term viability for
five- or six thousand private forms of money. History tells us
otherwise. So, in the meantime, I think it’s worthwhile to have an
investor protection regime placed around this.” The newspapers went
with that phrase, “I don’t think there’s a long-term viability for
five- or six thousand private forms of money,” for their headlines.
The markets tumbled. Some people argued that, in context, the
phrase wasn’t that menacing. Maybe, but, if you mix it with
something like this: “And 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.” A crystal clear picture of the SEC’s
intentions and politics emerges. 🤯 pic.twitter.com/XUlSV31jEw —
Eduardo Prospero (@edprospero23) September 23, 2021 What Does Gary
Gensler Think About Bitcoin? According to the Securities Exchange
Commission, Bitcoin is a commodity. Its unique characteristics make
it so. Also, there’s Gary Gensler’s 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’re exempt
from the SEC’s wrath. Are they, though? When host David Ignatius
asked about Bitcoin’s effectiveness as a store of value, Gary
Gensler answered: “I mean, holding a highly volatile asset–bitcoin
is that. It’s a digital, scarce, I would even say speculative store
of value. To hold appropriate capital, if it’s on a bank’s balance
sheet, which seemed to fit into the remit that we’ve had in the
past, that there be appropriate shock absorbers against the
potential loss.” That doesn’t 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? “I think it’s been a
catalyst for change. Nakamoto-san’s 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.” He did
everything but say “Blockchain, not Bitcoin.” That slogan might’ve
been phased out, but apparently, the idea remains. That’s 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. Related Reading | This
Is What Gensler’s Confirmation Could Mean For XRP BTC price chart
for 09/23/2021 on Bitstamp | Source: BTC/USD on TradingView.com And
What’s His Position On Decentralized Lending? You’re not going to
believe what this man thinks about DeFi lending. According to Gary
Gensler: “It’s raising new and interesting innovations around how
exchanges work and how even potentially some forms of decentralized
lending. We’ve had peer-to-peer lending for 15-20 years, we’ve
experimented with it. This is a new type of experiment. So, those,
I think, are really interesting innovations challenging the
established business models.” Oh. That’s actually a fair
description of the phenomenon. Never mind, then. Carry on. Featured
Image: Screenshoot from video interview | Charts by TradingView
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