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US Securities and Exchange Commission (SEC) chair Gary Gensler reiterated the risks associated with cryptocurrencies, especially stablecoins, in a recent interview with Washington Post.
SEC’s Gensler Likens Stablecoins to Poker Chips at Casinos
SEC chair Gary Gensler doubled down on his stance against stablecoins in an interview with the Washington Post on Tuesday. He also suggested that his agency has “robust” authority to regulate cryptocurrencies.
Right off the bat, Gensler took a shot at crypto’s volatility, citing the recent market crash which downsized most cryptocurrencies by double-digits.
He also turned his attention to stablecoins, a growing area of concern for regulators. Gensler shared that the SEC is compiling a report on stablecoins under Treasury Secretary Janet Yellen’s guidance. He also revealed that the agency is working with banks and Congress to expand its authority on stablecoins.
The SEC chair has previously likened the crypto sphere to the Wild West, and on Tuesday he expanded on this analogy:
Later in the conversation, Gensler discussed his views on crypto trading and lending programs. He has already stated that exchanges such as Coinbase should fall under SEC’s jurisdiction.
Gensler said that crypto trading platforms offer “thousands” of assets, many of which can be classified as securities. He added:
Crypto is Not a Viable Form of Long--Term Money: Gensler
Despite heaping praise on Satoshi Nakamoto’s innovation, Gensler maintained that he doesn’t see cryptocurrencies as a viable form of money in the long term. He compared crypto to the Wildcat banking era of the 19th century, during which banks in remote areas issued worthless currency backed by bonds.