SEC Chairman Gary Gensler recently made significant remarks about Bitcoin (BTC) and cryptocurrencies, stating that he believes most cryptos, aside from Bitcoin, are classified as securities. Speaking at an event hosted by New York University’s School of Law, Gensler expressed his doubts about the widespread use of Bitcoin and other cryptocurrencies as payment methods.
Gensler emphasized that Bitcoin and other cryptocurrencies are more likely to be viewed as stores of value rather than practical currencies. He stated, “It’s unlikely that Bitcoin and other cryptocurrencies will be widely adopted as a form of payment. Instead, they will continue to be seen primarily as a store of value.”
Cryptocurrencies Not Suitable as Payment Tools, Says Gensler
Gensler explained that for a currency to be viable, it needs to serve as a store of value, a medium of exchange, and a unit of account. He expressed skepticism about cryptocurrencies meeting these criteria and stated that countries typically rely on a single currency for payments. Gensler went on to critique the crypto industry, noting the significant number of fraud cases within the space.
Despite his critical views, Gensler mentioned that the SEC remains neutral regarding cryptocurrencies and that investors need to decide for themselves whether a particular cryptocurrency offers value. He stated, “People will make decisions about whether a cryptocurrency is beneficial based on the information provided.”
Fraud in the Crypto Industry
Additionally, Gensler touched on the issue of fraud, pointing out that there have been many instances of fraudulent activity within the cryptocurrency industry. He warned investors to be cautious when engaging with these assets and reiterated that Bitcoin is unlikely to serve as a widely accepted currency.
As reported by Turkish NY Radio, Gensler’s comments highlight ongoing concerns within the regulatory framework surrounding cryptocurrencies, as the SEC continues its efforts to clarify the nature of these digital assets.
