SEC chair does not endorse Bitcoin’s “unregulated” funding approach

US Securities and Exchange Commission (SEC) chairman Gary Gensler finally took a stand on Bitcoin, saying he was not in favor of an “unregulated” approach to finance.

Gary Gensler – Chairman of the SEC

“In 2008, Satoshi Nakamoto wrote the Bitcoin whitepaper in response, a kind of“ unregulated ”approach. It’s not surprising that there is some competition that you and I don’t support, but it tries to undermine consensus around the world. ”

Given Gensler’s experience teaching blockchain technology at MIT, many considered him the “right choice” to lead the securities commission. But it has been almost eight months since he was sworn in, and it’s fair to say that his tenure so far hasn’t made any progress in the crypto space as many would expect.

In addition, Gensler’s recent comments show that his loyalty lies in the old financial sector. But is that a surprise?

Bitcoin is a competitor in the banking sector

Gensler spoke at the Compliance and Market Integrity Summit (DACOM) on Wednesday (December 1) called The current banking system is the culmination of 40 years of adaptation.

“About 40 years ago we covered the digital currency system with money laundering and various regimes and sanctions around the globe. We classified that through a digital currency system called the banking system. ”

Gensler went on to say that Bitcoin was introduced in 2008 in response to the banking system. He also does not support this “unchecked” approach because it undermines the bank’s consensus.

However, Satoshi Nakamoto said that bitcoin is needed as an alternative to a currency discounting system. In fact, it implies that central banks are not acting in the best interests of the people.

“You have to trust the central banks not to devalue currencies, but the history of the fiat currency is rich in violations of that trust.”

The first bitcoin transaction was made on January 3, 2009, which included a message of the UK Prime Minister’s decision to bail out the Royal Bank of Scotland, Lloyds, Bradford & Bingley and Northern Rock.

Gensler is the only one expected

The cryptocurrency markets are bullish on Gensler’s appointment as SEC chairman in March. IOHK CEO Charles Hoskinson called There is an omen that he understands the blockchain space.

“What I like about Gensler’s appointment is that he is competent. Gensler is clearly a very intelligent person and fully understands our industry, having taught blockchain technology at MIT. ”

However, Gensler’s refusal to close the SEC’s lawsuit against Ripple, combined with a number of similar incidents including calls for closer oversight, shows that he is unwilling to reform the free cryptocurrency market.

Gensler has always emphasized that his job is to protect retail investors from fraud and manipulation.

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