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SEC chairman Gary Gensler feels crypto and fintech could be as disruptive ‘as the...

source-logo  thecoinrepublic.com 03 September 2021 14:57, UTC

$2.1 trillion cryptocurrency markets as a “truly global” asset class

  • Gensler bats for energy-efficient Proof-of-Stake (PoS) based crypto networks
  • Talks about the absence of clear investor protections obligations on these platforms
  • Stable coins are a means to avoid anti-money laundering safeguards and international sanctions.

SEC chairman Gary Gensler is an avowed proponent of cooperation between Europe and The United States to regulate decentralized financial technologies.

Gary Gensler is the chairman of the U.S. Securities and Exchange Commission (SEC) and was interacting with the European Parliament to share his policy recommendations regarding regulating crypto assets in a virtual program. Gary Gensler outlined how financial technologies play a significant role in globalizing economic flows and undermining established markets. Gensler told the Parliament’s Committee on Economic and Monetary Affairs on Sept. 1 that the transformation witnessed today is as significant as the internet in the early ’90s.

Truly global asset class

Gensler also highlighted $2.1 trillion cryptocurrency market as a “truly global” asset class. This segment has no borders or boundaries and operates 24 hours, seven days a week. Gensler was sticking to his usual pro-regulation views he has been propagating for weeks, but he did diverge from his held positions.

Gensler bats for energy-efficient Proof-of-Stake (PoS) based crypto networks.

Finnish politician Eero Heinäluoma asked Gensler about the environmental costs of Bitcoin mining. The politician added that the power consumed by the Bitcoin network was more significant than in The Netherlands and Sweden and more than the total greenhouse gas emission reductions of electric vehicles.

Gensler said that the increasing popularity of more energy-efficient Proof-of-Stake (PoS) based crypto networks, including Ethereum and Cardano, will now be concentrated around Bitcoin as PoS adoption rises.

The SEC Chairman called for greater emphasis on creating a solid policy framework to protect investors’ interests. The Defi platform enables millions of investors, and there is no mediator between the public and protocol. However, there are significant risks with decentralized finance. Several scams and frauds have given a very bad image, and Gensler said no clear investor protection obligations on these platforms.

The SEC head also talked about stable coins and said that three-quarters of crypto trading volumes involve stable token pairings. Gensler labeled stable coins as an avenue for those seeking to sidestep a host of public policy goals, including anti-money laundering safeguards and international sanctions.

thecoinrepublic.com