Please, Gary Gensler does not threaten the industry. Of course he didn’t, but… maybe he did? If the mafia boss repeats the same thing, there is no doubt about it. We quoted him verbatim. This is exactly what the chairman of the Securities and Exchange Commission told the Washington Post.they have Gary Gensler as a guest in their “Road Ahead” series. The host is David Ignatius. They talked about “Those five or six thousand projects“which is”Raise funds from the public. “
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Yesterday, we focused on Gary Gensler’s comments on stablecoins and Evergrande. Today’s topic is fighting words…or is it? Read what he is going to say and decide for yourself.
Gary Gensler uses honey and vinegar to lure cryptocurrency
Of course, today’s topic is that cryptocurrencies are securities? The head of the China Securities Regulatory Commission called on exchanges and related platforms, rather than targeting the project itself. Interesting strategy. Gary Gensler explained:
“If these tokens — there are five or six thousand different projects — if these tokens have the attributes of investment contracts or bills, or all have the attributes of stocks or bonds. Essentially, one of the core problems is the existence Platform: A trading platform where you can buy and sell these tokens; Lending platform, you can get a return on these tokens, these tokens not only have dozens of tokens, sometimes hundreds or thousands of tokens They are likely to have securities, investment contracts or notes or others that meet the security definition on these platforms. These platforms should come in, and they should figure out how to register and become the responsibility of investment investor protection.”
Well, good luck to you. Mr. Gensler, what happens if people don’t comply with your organization’s mandate?
“I am really worried that we will continue to file these law enforcement cases, but there will be problems. There will be problems with the lending platform or the trading platform. Frankly speaking, when this happens, I think many people will be hurt.”
We are not saying that Gary Gensler is threatening you. He was obviously talking about the risks of unregulated markets. However, “There will be problems” with”Many people will be hurt.“That’s what the man said.
— PlanB (@100trillionUSD) September 21, 2021
Definition of investment contract
Here, Gensler talks directly with host David Ignatius:
“If you, David, ask some listeners of this show to give them your money, something of value. They rely on you, David, and possibly five to ten other entrepreneurs and computer scientists to build a platform— —Build a platform, that token, etc. They give it to you and expect to make a profit. Our Supreme Court said a long time ago that this is an investment contract.”
It’s hard to argue with it. But when you mix it with this, it sounds dangerous:
“So, public funds have a certain status in the world. Private funds usually do not last that long. Therefore, I think that five or six thousand private forms of funds have no long-term viability. History tells us that this is not the case. Therefore, at the same time, I I think it is worthwhile to build an investor protection system around this point.”
There is a sentence in the newspaper, “I don’t think five or six thousand private forms of money have long-term viability,” as their headline news. The market crashed. Some people think that in context, the phrase is not that threatening. Maybe, but if you mix it with something like this:
“And I think that out of a $2 trillion, 5 or 6,000 project, it’s best to be in investor-consumer protection, tax compliance, anti-money laundering, and financial stability.”
A clear picture of the SEC’s intentions and politics emerged.
-Eduardo Prospero (@edprospero23) September 23, 2021
What does Gary Gensler think of Bitcoin?
According to the Securities and Exchange Commission, Bitcoin is a commodity. Its unique characteristics make it so. In addition, there is Gary Gensler’s respect for Satoshi Nakamoto and the fact that he teaches cryptocurrency courses at MIT. Because of this, Bitcoiners seem to feel that they are free from the SEC’s wrath. Are they?
When the host David Ignatius asked about the effectiveness of Bitcoin as a store of value, Gary Gensler replied:
“I mean, holding a highly volatile asset-Bitcoin. This is a digital, scarce, I can even say it is a speculative store of value. In order to hold appropriate capital, if it is in the bank On the balance sheet, this seems to be in line with our past responsibilities, so there are appropriate shock absorbers to deal with potential losses.”
This does not sound like a fan of Satoshi Nakamoto. Or as if he fully appreciates Bitcoin. Frankly, what do you think of Bitcoin as an innovation, Mr. Gensler?
“I think this is a catalyst for change. Nakamoto-san’s innovation is not only Bitcoin as the first, but the entire distributed ledger technology has always been a catalyst for change. Central banks and private sectors around the world are studying how to strengthen us. And enhance our payment system to make it run in real time 24 hours a day, 7 days a week, and at a lower cost.”
He did everything but said “blockchain, not Bitcoin”. This slogan may have been eliminated, but obviously, the idea still exists. This is actually what Gary Gensler, who supports cryptocurrency regulators, believes Bitcoin has brought to the world. A catalyst for increased competition between the central bank and the private sector. Wow.
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BTC price chart for 09/23/2021 on Bitstamp | Source: BTC/USD on TradingView.com
What is his position on decentralized lending?
You won’t believe this person’s view of DeFi loans. According to Gary Gensler:
“It puts forward new and interesting innovations around the way the exchange operates and the potential for certain forms of decentralized lending. We have been P2P lending for 15 to 20 years, and we have been experimenting with it. This is a kind of New types of experiments. So, I think these are really interesting innovations that challenge established business models.”
Oh. This is actually a fair description of this phenomenon. It’s ok. continue.
Featured Image: Screenshoot from video interview | Charts by TradingView