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In the aftermath of the U.S. Securities and Exchange Commission’s (SEC) enforcement actions against Coinbase and Binance, chairman Gary Gensler engaged in a conversation, maintaining that further digital currencies are unnecessary. “We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen, they’re all digital right now,” Gensler emphasized during his guest spot on CNBC’s “Squawk on the Street” program.
Gensler: ‘We Already Have Digital Currency, It’s Called the U.S. Dollar’
Following the legal filings involving Coinbase and Binance for failing to register as brokerages and selling unregistered securities, Gary Gensler, the current SEC chairman, shared his thoughts on CNBC’s Squawk Box on Tuesday. His sentiment indicated that numerous existing crypto assets are unwarranted.
“Look, we don’t need more digital currency,” Gensler emphasized on CNBC’s “Squawk on the Street.” “We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen, they’re all digital right now. We already have digital investments.”
In its recent lawsuit against Coinbase and numerous other enforcement instances, the SEC has identified a variety of digital tokens as securities. The Coinbase complaint specified ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC as unregistered securities. In other enforcement operations, SEC also deemed XRP, TON, LBC, POWR, ALGO, OMG, SALT, TRX, BTT, UST, LUNA, and KROM as securities, among several others.
During his CNBC appearance, Gensler criticized crypto trading platforms saying that they combined multiple functions. “These trading platforms, they call themselves exchanges, are commingling a number of functions,” the SEC chairman said. “In traditional finance, we don’t see the New York Stock Exchange also operating a hedge fund making markets.”
Coinbase Says SEC’s Enforcement Approach ‘Is Hurting America’s Economic Competitiveness’
In contrast, Coinbase’s chief legal officer, Paul Grewal, informed Fortune that the SEC’s enforcement measures negatively impact the United States. Grewal stated, “The SEC’s reliance on an enforcement-only approach in the absence of clear rules for the digital asset industry is hurting America’s economic competitiveness and companies like Coinbase that have a demonstrated commitment to compliance.”
Gensler maintained that SEC’s actions serve the American public’s interest. “The investing public has the benefit of the U.S. securities laws. Crypto should be no different, and these platforms, these intermediaries need to come into compliance,” Gensler firmly asserted during the interview.
What are your thoughts on Chairman Gensler’s assertion that we don’t need more digital currencies? Share your thoughts and opinions about this subject in the comments section below.