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- They have a lot of casinos there in the Wild West, and the poker chip at the casino gaming tables is these stablecoins, as Gary Gensler explained
- The SEC chair called both agencies’ jurisdiction strong but noted that there were gaps in coverage, notably for stablecoins, which may have characteristics of investment contracts
- Following the announcement by major U.S.-based cryptocurrency exchange Coinbase that it would cancel its proposal for a crypto loan scheme, the SEC chair issued a statement
They have a lot of casinos there in the Wild West, and the poker chip at the casino gaming tables is these stablecoins, as Gary Gensler explained. Gary Gensler, the chairman of the United States Securities and Exchange Commission, or SEC, has expanded on his Wild West comparison for cryptocurrencies, calling stablecoins instruments for gambling at old-timey casinos. Gensler told Washington Post writer David Ignatius on Tuesday that most crypto projects dealt with securities that come within the SEC’s regulatory authority, while others were better suited for regulation by the Commodity Futures Trading Commission, or CFTC. The SEC chair called both agencies’ jurisdiction strong but noted that there were gaps in coverage, notably for stablecoins, which may have characteristics of investment contracts.
Right now, stablecoins are practically functioning like poker chips at the casino, Gensler remarked. They have a lot of casinos here in the Wild West, and the poker chip at the casino gaming tables is these stablecoins. In terms of stablecoin regulation and enforcement, Gensler suggested that both the SEC and the CFTC might benefit from help from Congress. However, according to the SEC chair, present regulations appear to be overbroad when it comes to dealing with a contemporary financial asset like cryptocurrency. He is afraid that they will continue to pursue these enforcement cases, but there will be a problem. On loan sites and trading platforms, there will be an issue. To be honest, he believes a lot of people will be harmed if that happens.
Following the announcement by major U.S.-based cryptocurrency exchange Coinbase that it would cancel its proposal for a crypto loan scheme, the SEC chair issued a statement. The Securities and Exchange Commission had previously threatened legal action against the exchange, claiming that the software was security. According to news, Gensler intended to implement crypto-related policy changes in the areas of token offerings, decentralized finance, stablecoins, custody, exchange-traded funds, and lending platforms in August. He has long urged crypto projects to register with the SEC, emphasizing that they must collaborate with regulators in order to thrive in the long run.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
