In a series of recent interviews and speeches, Gary Gensler, chairman of the United States Securities and Exchange Commission, called the cryptocurrency market “wild waste” because of its uncontrolled and alleged fraudulent environment.
Power on. A monthly opinion column by Mark Powers, who has spent most of his 40-year legal career working in complex securities-related cases in the United States since joining the SEC. He is now an assistant professor at Florida International University College of Law, where he taught a course on “Blockchain, Crypto and Regulatory Considerations.”
In an interview with the Washington Post published on September 21, Gary Jensler said that in history, “private currency” had no longevity. As discussed below, I have taken issue with that statement. Now five months into his role as leader of this important government agency, Gensler is not only a powerful voice in the use of blockchain and in the debate over regulatory considerations, but also dangerous.
The concern for the crypto industry is that Gensler is a very bright and determined man, as well as ambitious. She is a resident of Wharton, Goldman Sachs and worked at the U.S. Treasury before becoming chairman of the SEC’s sister agency Commodities Futures Trading Commission (CTFC). While at CFTC he led what was probably the only federal agency created and Implementation All requirements of the Serbanes-Oxley Act of 2002. Not surprisingly, his biography also includes working as a special adviser to the assistant author of the law’s co-author, Senator Paul Sarbanes.
My firm had the honor of getting to know and work with Congressman Mike Oxley, another co-author of Historical Law, while at my law firm, Bakerhostetler. Mike led our government affairs practice, while I led our National Securities Litigation and Regulatory Enforcement practice.
Given this vast experience inside and outside our government, Gensler knows how to do things politically. He has taught and taught courses at the Massachusetts Institute of Technology (MIT) on blockchain in recent years.
– Documenting Bitcoin 📄 (ocuDocumentingBTC) August 3, 2021
As I said or suggested in the previous column, It is a double-edged sword. On the one hand, it is good to have someone in government who understands technology and its beneficial uses. On the other hand, the Biden administration could be used smartly to find ways to serve the interests and politics of the cryptocurrency rival with Federal Reserve Chairman William Powell and Treasury Secretary Janet Yellen. .
It will only get worse if there is Recruitment of Saule Omarova Head Office of the Controller of Currency, Since he has publicly come out against the use of digital resources. This would be quite contrary to the policy of his immediate predecessor, Brian Brooks. In the declining days of the Trump administration, Brooks proposed rules and guidelines that give federal banks the freedom to keep and maintain digital assets for clients. Let’s see how long it takes this Hakish Omarova to reduce it.
Advantages and disadvantages of accepting Bitcoin
At one point, you can’t blame them for being against Bitcoin (BTC) As an alternative digital currency, or medium of exchange, accepted in real US dollars.
Its global use without any government oversight or intervention frightens them and it can reduce the dominance of the US dollar as a global reserve currency over time. They have the status of large financial institutions and intermediaries for preservation and protection. They are relatively long-term government fixtures and they clearly believe in the things that govern our government.
Whenever they adopt rules and policies that hinder or control our activities, they always claim that it is for our own good, such as to protect us from massive fraud or loss, and for the good of our economy, to protect us from economic recession. Make or inflation but we know better, don’t we?
On the other hand, the good news for those of us who believe in the promise of distributed laser technology is that, in my opinion, Too late. Way BTC, ether (ETH) And other cryptocurrencies travel digitally from country to country worldwide, beyond the control of a country including the United States.
That’s right, let me say it again: it is Too late. A country cannot kill it by banning its use and activity, or a country cannot control its use by world citizens in an effort to control the BTC and its citizens. Bitcoin is now a world currency that is owned and controlled by any country or currency group. It is owned by the citizens of the world.
Need proof of what I’m saying?
Look at China, which has banned activities in cryptocurrency A few times over the last few years, Although not in possession of the token. Now, it is again banning mining and trade. Has it completed the death of BTC? No. Instead, the mining industry has moved to Eastern Europe and the United States.
Look at South Korea, which All crypto exchanges are required for registration With his regulatory body this past week. Not dozens.
Look at India, which Use of BTC is prohibited, Up to the Supreme Court That law has been overturned. Today, it is reported by an August analysis of chinalysis India is now number two Accepting crypto in the world.
Crypto is inevitable
I have been saying since 2001 that I believe that in time we will have a dual financial system and economy. What Powell is doing at the Federal Reserve and what China has already introduced to its citizens in the big cities will be a parallel Fiat digital currency in the form of a crypto world economy and the central bank’s digital currency, or CBDC. Digital Yuan.
Accordingly, I took issue with the history lesson of the SEC chair when he said that personal currencies are not permanent, which means the same would be the case with BTC. I don’t agree with his character. I don’t see BTC as a “private” currency. On the contrary, it is a World currency, Very public and available to anyone, including smartphones or computers. It is not created by a private or permitted blockchain, but rather on an unauthorized one.
While the BTC is not a fiat currency created by a sovereign government, it is not a means of exchange for at least the billions of people who use it worldwide to buy things worldwide, send them to relatives in other jurisdictions, and trade on its value. Just like the daily trade of currency traders on the value of the US dollar. When Gensler argues that BTC is not supported by anything, he may need a lesson to remind him that USdollar has not been supported by gold since 1971.
Mark Powers He is currently an Assistant Professor in the College of Law at Florida International University, where he teaches “Blockchain, Crypto and Regulatory Considerations” and “Fintech Law”. He recently retired from practice at an ML100 law firm, where he created both its National Securities lawsuit and the regulatory enforcement practice team and its hedge fund industry practice. Mark began his legal career in the SEC’s Enforcement Division. During his 40 years in law, he was involved with representations, including the Bernie Madoff Registry Scheme, the recent presidential pardon, and the Martha Stewart Insider Trading Trial.
The opinions expressed do not necessarily reflect the views of the author alone or necessarily those of Cointelegraph or the Florida International University College of Law or its affiliates. This article is for general information purposes only and should not be taken as legal advice.