Gary Gensler, chairman of the Securities and Exchange Commission, showed his card. He spoke with Legacy-Media-Operation The Washington Post and host David Ignatius Their series “Path Forward”And spread the beans. We watched the whole interview on NewsBTC so you don’t have to. We have selected the most important quotes and are presenting them in all their splendor so that you can all read them and come to your own conclusions.
Of course, we are going to offer our two cents. We are not made of steel. In general, though, you’ll find Gary Gensler’s unadulterated words. They are shocked enough.
Gary Gensler is looking directly at Stablecoins
Although host David Ignatius had no question about a stable currency, the matter was on Gensler’s mind. The chairman of the SEC brought it up a few times. At first he said:
“Something called stable coins, and how banking companies – and we, market companies – coordinate because these stable currencies may have the characteristics of investment contracts, some features like banking products, but the banking authorities now do not have the full range of what they need. ”
But his organization is not just thinking about stable currencies and trying to define them and isolate their properties. They are preparing an official document:
“We are now working under the direction of Secretary Yellen and working on a report on stable currency, and in a stable currency world, I think there will be some help from Congress.”
It doesn’t feel bad. Their report may conclude that a stable currency is a useful invention and tool that can benefit the entire financial system, right? Wrong. Focus on what you think about Gensler and the SEC stable currency and the language:
“These stable currencies are now working like insect chips in casinos; So, add the Wild West analogy. I mean, we’ve got plenty of casinos here in the Wild West, and the casino gaming table has these stable coins with insect chips.
Things are going to be interesting for stable coins, it seems.
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Does the SEC want to register a crypto exchange?
See, there are no two ways about this. Gary Gensler wants all exchanges, including decentralized, to register with the Securities Exchange Commission. To persuade them, he told them to come to the exchange:
“I think it would be better – platforms that trade securities, platforms that have nding products, called” stacking products “and I’m glad to describe it to your audience, but where do you actually put a coin on the platform and you Achieve a return – the ones they come up with and we sort through them, find out how to get within their perimeters.
And, you may ask, what is the scope? Well, this quote makes it very clear:
“I think in a $ 2 trillion, 5- or 6,000 project, it’s better to be between investor-consumer protection, tax compliance and money laundering and financial stability.”
This is consistent with that Recent announcements from Gensler About the requirements of crypto regulation:
“Gensler believes that if the market is to grow, it must take control. The SEC chairman explained that regulation will provide confidence in the market, which is important if the market does not want to be irrelevant over time.” Gensler’s focus is mostly on trading platforms, due to the fact that this is where the majority (~ 95%) of the crypto market is conducted.
Is Gary Gensler even a cryptocurrency enthusiast?
Since the new head of the SEC once taught a class on cryptocurrency at MIT, people assumed he would be a crypto legislator. Is he then? Let’s read what he said specifically about this:
“I think this new technology is very interesting – and whoever it was, Satoshi Nakamoto, it has led to change. It is pushing the global central bank to reconsider how the payment system can be provided. As a catalyst for a change in financing, the so-called “fintech” is advancing the juncture of new technology and money. “
Thus, a non-committal opinion. However, Gensler is adamant about bringing cryptocurrency into a public policy framework. So strongly, that he said, “I don’t think technologies are sustainable outside of social and public policy frameworks. “And then,”I think we need to bring this into the public policy framework and make sure that we address these important public policy goals.. “And then one more time,”So, new technology is usually a good thing; It challenges the establishment. But I don’t think new technologies really exist outside the framework of public policy.”
Does this have anything to do with Evergrand?
Day after day Report on the situation, Evergrand Became one of the biggest stories of the year. We explained that the company reportedly owed 300 300 billion, and probably the reason for all this:
“Obviously, China Evergrande was caught in a loop. The company was pre-selling the apartments and using that money to fund other projects, where they pre-sold the apartments and the cycle resumed. Evergrande bonds were suspended, and an opportunity they reactivated. No. They may be worthless.The stock is close to its all-time low, it has lost about 80% of its value this year.
Of course, Mr. Ignatius of the Washington Post had to bring the matter up. He said analysts were concerned that there might be. “Transitions in the financial markets, as we remember from 2008 and the failure of Lehman Brothers.“Then, he asked:”Are you confident that our financial markets are safe today in the case that there was such a failure, not necessarily on this company, but a large company of that level?”
Gensler declined to comment on a Chinese company, saying it was beyond his jurisdiction. In response to a question, he said,
“I think after the crisis of the 200s, the reforms were very strong in the US financial system. This does not mean that the issues we see in the case of the SEC and other important regulators like the Federal Reserve and bank regulators and the CFTC are not the ones that I was once honored to chair. But I think, ‘We’re in a better position in 2021 to absorb some of that shock before the 201st crisis, but that doesn’t mean we’re isolated. Our economies are connected around the world. ”
Featured Image: Screenshoot from the interview | Charts by TradingView