The wave of discussions about cryptocurrencies in the Senate has just gained a new chapter. Gary Gensler, the chairman of the SEC, is the latest figure to give his testimony before the United States Senate. And his statements? Well, they are as intriguing as they are enlightening.
Senator Bill Hagerty, pointing to Grayscale’s recent decision, asked Gensler what it would take for the SEC to approve a BTC Spot ETF. Gensler was cautious in his response, mentioning that many applications are still under review and that SEC staff are awaiting recommendations.
A particularly interesting talking point was the exchange between Gensler and Mark Warner about AI deepfakes. For those who don’t remember, Gensler was recently the victim of fake news claiming he was resigning from his position at the SEC. During the session, he speculated that the source of the news could be someone trying to influence the stock market or crypto prices.
And Gensler’s concern about advanced counterfeits doesn’t stop there. He expressed that both deepfakes and artificial intelligence pose a “real risk” to markets. And, regarding the crypto universe, Gensler was quite frank. According to him, the field of cryptocurrencies is currently rife with fraud and abuse.
Chairman Sherrod Brown highlighted the SEC’s action against crypto, using the example of the FTX collapse to illustrate the potential dangers. He expressed the urgent need for proper regulation in this sector.
The question of whether the SEC has sufficient resources to properly monitor and regulate crypto has also been raised. Gensler responded that the organization has only grown 3% in size over the past eight years, implying that the answer is an implicit “no.”
When looking at history, Gensler highlighted a comparison to the 1920s and the problems seen before the implementation of federal securities laws. With most crypto tokens falling under the jurisdiction of securities laws, he emphasized that crypto brokers should also follow these laws.
It is clear that Gensler’s views will fuel discussions about the nature and future of cryptocurrencies. What is clear is the need for clear and fair regulation to ensure the integrity of the US crypto market.
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