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SEC Chair: Bitcoin’s Speculative Nature Mirrors Gold’s Historical Value
Gary Gensler, the departing Chairman of the United States Securities and Exchange Commission (SEC), has made a striking comparison between Bitcoin and gold. Speaking publicly for the last time before his office tenure ends on January 20, Gensler emphasized that while Bitcoin is a highly speculative asset, its global appeal mirrors that of gold’s historical value.
In an unprecedented statement, Gensler highlighted the cryptocurrency’s unique standing among other digital tokens subject to securities regulations. The Chairman acknowledged that most cryptocurrencies are not exempt from these regulations and may fall under the category of securities. He emphasized the need for proper disclosures to protect investors from fraud and manipulation.
Gensler’s comments come as a surprise, considering his agency has consistently taken a cautious approach towards Bitcoin’s regulatory status. However, it is essential to note that Gensler’s tenure saw significant developments in crypto regulation, including the approval of Bitcoin and Ether futures-based ETFs. These steps aimed to bring regulated investment options to market.
During his address, Gensler stressed that while he sees Bitcoin as a unique asset, its speculative nature must be acknowledged. He pointed out that 7 billion people worldwide are interested in trading Bitcoin, echoing gold’s historical value. This perspective mirrors the way people have traded and trusted gold for thousands of years, underscoring its enduring appeal.
The Chairman also addressed the regulatory framework surrounding cryptocurrencies. Gensler emphasized that his agency will focus on ensuring investor protection by implementing clear regulations and disclosing material information to the market. He acknowledged emerging challenges such as artificial intelligence and leverage in capital markets and cautioned against unchecked leverage.
Gensler’s comments have sparked mixed reactions within the cryptocurrency community. Some proponents of Bitcoin see this as an acknowledgment of its value, while critics argue that his remarks may further entrench regulatory uncertainty.
In conclusion, Gensler’s statement has shed new light on the SEC Chair’s views regarding Bitcoin and gold.
Source: cryptonewsland.com
