Gensler Calls Bitcoin ‘Highly Speculative’ Yet In-demand: 7 Billion Want To Trade It

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During an interview with CNBC’s Squawk Box, departing U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler shared his insightful views about the digital assets sector, emphasizing Bitcoin (BTC) and the overall cryptocurrency market.

His comments arise during a time when the industry is under heightened examination, encountering regulatory hurdles and demands for stricter adherence to current legal standards.

SEC Chair Gensler Highlights Alleged Regulatory Gaps In Crypto

In the interview, Gensler underscored his conviction about the significance of democratic procedures and regulatory structures, pointing out that the cryptocurrency sector, being a speculative area, has not adhered to numerous legal requirements.

Gensler noted that although Bitcoin doesn’t fit the classification of a security, it seems that about 10,000 other digital tokens currently available are subject to existing securities laws.

Gensler mentioned that for a long time, investors have suffered due to the SEC’s efforts to combat fraud and manipulation in financial markets.

In a recent statement, the ex-chair reinforced the Securities and Exchange Commission’s continuous dedication to upholding the law, pointing out that his previous counterpart, Jay Clayton, had brought approximately 80 legal actions against cryptocurrency-related entities deemed non-compliant.

It appears that the main concern of Gensler is to guarantee that investors get sufficient information and safeguards, especially in an environment where most assets are predominantly traded based on feelings rather than financial data.

‘7 Billion Want To Trade Bitcoin Like Gold’

Despite his cautious outlook towards the broader crypto market, Gensler conceded the significant demand for Bitcoin, remarking, “I believe Bitcoin is a highly volatile and speculative asset. Yet, with approximately 7 billion people worldwide, there’s an inherent desire to trade it just as we have gold for thousands of years.

Additionally, Gensler touched upon the Securities and Exchange Commission’s initiatives to bring about changes within the wider financial sector. These changes aim at enhancing corporate leadership practices and increasing market transparency.

He pointed out substantial shifts in the U.S. Treasury market, a sector anticipated to expand considerably over the next few years. In fact, he emphasized that our current $28 trillion Treasury market is forecasted to reach approximately $35 or $36 trillion within the next four years. This highlights the importance of strong regulatory structures to maintain market stability.

Although there’s much enthusiasm about Bitcoin, Gensler has expressed concerns about lingering policy doubts, especially considering the latest presidential shift. He conceded that the Securities and Exchange Commission’s view on cryptocurrencies might adjust as fresh regulations take shape, suggesting a readiness to adjust to shifting market conditions.

Under Gensler’s leadership, there has been a strong emphasis on enforcing regulations in the cryptocurrency sector, prioritizing investor security and maintaining market honesty.

Under President-elect Donald Trump, the regulation of cryptocurrencies is yet to be fully defined, as he adopts a fresh perspective towards Bitcoin and the entire digital assets sector, emphasizing on fostering innovation.

Currently, as I’m typing this, Bitcoin is on an upward trend, almost reaching a 3% increase within the last 24 hours, approaching the $97,400 mark. It had a short dip to $89,300 on Monday before that.

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2025-01-15 12:41