Posted 8 months ago | by Catoshi Nakamoto
U.S. Security and Exchange Commission (SEC) chair Gary Gensler spoke with the Washington Post about cryptocurrency regulations and how he personally sees the industry moving forward, i.e. regulated out of existence, with stablecoins and Proof Of Stake (PoS) digital assets labeled as securities. At one point during the interview with WAPO Gensler even suggested that all cryptocurrencies would cease to exist as “history tells us that private forms of money don’t last long.”
Stablecoins Are Casino Chips And The Digital Asset Market Is The Casino
Gensler’s Livestream interview with Washington Post started out with propaganda videos of protests in El-Salvador, a country that just accepted Bitcoin as legal tender. So the signs were already there that this was going to be a hit piece against the crypto digital asset industry as a whole.
Tomorrow at 12pm I’ll be live with @washingtonpost to talk about cryptocurrency.
Livestream will be here ⬇️https://t.co/Ahg1hZ5Fc1
— Gary Gensler (@GaryGensler) September 20, 2021
During the exchange, Gensler hammered down on his position on digital assets indicating that his agency has “robust” authority to regulate the cryptocurrency industry espousing that “most” cryptocurrencies have attributes of securities. A claim that he has been howling since the Aspen Security Forum conference two months ago when Gensler first said that the digital asset market was the “wild west.”
He also stated that stablecoins are “casino chips” while the greater “wild west” digital asset market which is absolutely filled with numerous technology advancements is just a “casino.” Gensler pretends to understand blockchain and financial technology, having taught at the Massachusetts Institute of Technology (MIT) as a professor. But he is now seeking to alienate entire protocols that use the Proof Of Stake (POS) mechanism for consensus on the network.
Gensler also moronically expressed that coins that utilize staking i.e. Proof Of Stake or lending that yield any form of return are securities. Essentially Gensler is shutting out numerous platforms with life-changing technology and an entire industry due to its chosen consensus model over Proof Of Work. So in fact, Gensler is proposing weakening the U.S.’s exposure to Proof Of Stake assets and a birthing industry by trying to force companies to submit various reports to the SEC. This would create increasing costs for investors and crypto businesses themselves, but it would net the IRS a substantial big paycheque.
As mentioned above, Gensler has previously compared the crypto industry to the “Wild West,” an analogy he doubled down on during the interview with WAPO. “We’ve got a lot of casinos here in the Wild West,” Gensler said. “And the poker chip is these stablecoins.”
One can even argue that Gary Gensler is doing the exact opposite of what he’s supposed to do, “protect investors” by damaging the integrity of the crypto market and as a result losing investors money stating that all assets which utilize staking for a consensus mechanism are securities. On the subject of stablecoins, Gensler told the Washington Post that the SEC is in the process of putting together a report about stablecoins under the guidance of Treasury Secretary Janet “bank paycheque” Yellen.
As Bitboy Crypto reported last week during the Senate Banking Committee meeting, Gensler told crypto exchanges singling out Coinbase, they “should register with the SEC.” He reiterated that call for crypto exchanges to register with the SEC.
Gensler Says Proof Of Stake Cryptocurrencies Which Use Staking As A Consensus Are Securities Due To Yielding A Return
In his discussion with the Washington Post, Gensler further expressed his thoughts that crypto trading and lending platforms offer up to “thousands” of tokens. He added it is “highly likely” that some of these tokens fit the definition of a security.
“Those platforms should come in, and they should figure out how to register,” Gensler said. “Not many have, and so I do really fear that we’ll keep bringing these enforcement cases but there’s gonna be a problem … and, frankly, when that happens I think a lot of people are going to get hurt.”
With Gensler’s blanket definition of a security being “any digital asset that offers a yielded return or lending,” that would make the entire industry even gaming coins be a security. Even Bitcoin technically falls under that definition which is mined for what? A return, you guessed it!
So yes, Mr. Burns, I am sure that “a lot of people are going to get hurt,” by the regulators themselves as well as bad actors in the space. Over-regulation will harm the blockchain industry as a whole and hurt the retail investor in the process. Yet, still, Gensler insists on wanting to put down his boot on an entire industry stifling technology, growth, and in turn innovation which will only serve to drive away innovators from the U.S. to more shady offshore locations.
This author will end this article by repeating a brief quoted question to Gensler from John Kennedy, a Louisiana Republican during the recent Senate Banking Committee hearing, “do you consider yourself to be our daddy?” I’ll add to that, are your famous last words, “history tells us that private forms of money don’t last long?” You know very well that past “forms of money” were not digital and authenticated by blockchain technology.
Bitcoin is currently trading at [FIAT: $41,115.74] DOWN –6.2% in the last 24 hours according to Coingecko at the time of this report.