Bitcoin and Cryptocurrencies Are Transformative Technologies – US SEC Nominee
When the new U.S. administration came on board, most people wondered what their stance would be on crypto, including Bitcoin. However, it doesn’t seem as though the future of crypto trading is bleak under the Biden-led administration. According to Gary Gensler, the President’s nominee for the U.S. SEC head, “Bitcoin and other cryptos will cause transformative changes to the finance world, and it has started already.”
The Daily Hodl reports that the President’s pick for the U.S. SEC head told legislators during his senate confirmation hearing that crypto assets, especially Bitcoin, are opening up a new path of financial freedom.
Regulators Must Ensure That Investors Are Secure
He opined that investors must also be kept safe. “Through these cryptocurrencies, payments and financial inclusion have been viewed with a fresh perspective. Hence, these inventions are already stimulating changes in the industries mentioned above and other ones. However, there is a need to develop effective ways for investors to be protected.”
Gensler also gave a detailed plan of how he intends to manage these digital assets once his nomination as the SEC’s head is confirmed. He continued, “I will collaborate with other commissioners to create the right publicity for new inventions, but more importantly, provide a framework to protect investors.”
However, he remarked that “a digital asset that is considered a security will be subjected to securities rules as determined by the SEC. So, exchanges that trade such securities must take note. Though we’d still like to promote inventions, we must ensure that we do not stray from our core values such as capital formation and investor protection.”
If Gensler’s nomination is approved, part of his responsibilities will include monitoring cryptocurrencies that are deemed to be securities. Gensler was known to make a strong case for XRP to be categorized as a security, while Bitcoin can’t be classified as such.
His reason was that Bitcoin users who created Bitcoin created it as a decentralized asset. But firms that made and issued XRP and similar digital assets have breached securities rules.
Widespread Involvement in Bitcoin
It is no longer news that institutional firms such as Tesla, MicroStrategy and others are massively supporting the global adoption of crypto and Bitcoin. What seems newsy is that NetFlix may be joining them soon, as indicated by Tim Draper’s recent interview. He predicted that NetFlix would soon invest in the leading cryptocurrency.
It is noteworthy that no specific SEC rules apply to cryptocurrencies and how people and companies should treat them. Hence, it is no wonder some opine that SEC is using an unwritten rulebook to deal with crypto-related situations.
Gensler remarked during his hearing that SEC must give clear guidance on cryptocurrencies. And it doesn’t matter whether the populace provides the clarity with a thumbs up or down. What matters is for it to be available. For many years now, crypto analysts and even some SEC officials have been yearning for security laws that should apply to crypto. It is unclear whether Gensler’s remarks some three years ago will affect the confirmation of his nomination.
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