Bitcoin has been dubbed “rat poison” by business legend Charlie Munger. It has the potential to create “world peace,” according to Twitter and Square CEO Jack Dorsey. Gary Gensler, the chairman of the SEC, has an opinion on the matter.
Let’s go with “rat peace,” which is somewhere in the centre. Wall Street’s top cop said he’s interested by the technology but wants greater regulation to safeguard investors in a big speech on crypto yesterday.
Calculate the following: The crypto industry has skyrocketed in value just a twelve years after bitcoin was first presented to the public.
According to Gensler, the trade is valued $1.6 trillion.
Each of the 77 tokens is valued at least $1 billion, while the other 1,600 are each worth at least $1 million.
But, according to Gensler, it’s the “Wild West” right now. Many investors might be harmed if greater protections aren’t put in place. Crypto is “rife with fraud, frauds, and misuse in some applications,” according to the report.
Gensler urged Congress for greater resources to oversee the crypto sector, such as the powers to monitor crypto exchanges, in order to clean things up.
Regulation in crypto should be welcomed, according to Gensler, since it establishes boundaries and may pave the road for success. After all, according to Gensler, the motor business didn’t truly take off until the government imposed traffic lights and speed restrictions.
What difference does Gensler’s opinion make?
As the country’s top financial regulator, he has the power to issue the most important crypto regulations to date.
But here’s something you might not know about Gensler: he’s a crypto geek. He spent three years at MIT teaching a subject called “Blockchain and Money” after assisting with Hillary Clinton’s presidential campaign.
In the end, Gensler’s opinion on cryptocurrency can be summarized in two words: “speculative investment.” He appears to be ready to let the sector develop, but with greater parental oversight.