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Securities and Exchange Chairman Gary Gensler was on CNBC Wednesday morning to discuss his views on how the crypto universe should be regulated. Despite previously noting that the crypto sector has become “highly speculative stores of value,” Bitcoin (BTC/USD) price and Ethereum (ETH/USD) price traded higher.
According to one crypto pro, his comments shouldn’t necessarily be considered bad for the industry.
Cryptos will lead to a ‘better tomorrow’
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Chris Zuehlke, Cumberland global head, commented on CNBC’s “Squawk on the Street” it is fair to say that there is some speculation in the crypto world but Gensler’s blanket statement is “short-sighted.” Bitcoin and Ethereum in particular represent “monumental shifts in technology” that represent a “better tomorrow”.
Cryptos will aid in global financial inclusion and the world is “receptive” to these changes, he said.
Zuehlke’s comments seem to be echoed by investors as Bitcoin was higher by 2.6% on Wednesday while Ethereum was showing outsized gains at nearly 9%. Perhaps adding to the gains was a Tweet from Commodity Futures Trading Commission boss Brian Quintenz which eased any headwinds associated with potential regulations that would slow down the pace of innovation in the crypto world.
Quintenz said the SEC has “no authority” over crypto assets and their trading venues.
Just so we’re all clear here, the SEC has no authority over pure commodities or their trading venues, whether those commodities are wheat, gold, oil….or #crypto assets.
— Brian Quintenz (@CFTCquintenz) August 4, 2021
Innovation and regulation can coexist
Even if the SEC can introduce new rules impacting the crypto universe, it would be wrong to assume this represents a headwind for the industry. According to Zuehlke, innovation and regulation “do not need to be mutually exclusive.” He explained:
I think when someone like Chairman Gensler speaks on this topic, what’s important to understand is that the conversation should continue. And the regulators and market participants should work together to make sure we implement smart regulations to provide the investor protections.