By claiming that Bitcoin has damaged the global banking system, Gary Gensler reveals his true intentions.
Gensler, the chairman of the Securities and Exchange Commission, has officially stated his position on Bitcoin, saying that he does not favor its “off-the-grid” approach to finance.
Many hailed Gensler as the “perfect candidate” to lead the securities regulator, citing his experience teaching blockchain technology at MIT. But, after eight months in office, it’s fair to say that his term hasn’t progressed the cryptocurrency sector as much as many had hoped.
A threat to the banking system?
At the Digital Asset Compliance & Market Integrity (DACOM) Summit on Wednesday, Gensler said the present banking system is the sum of four decades of “tweaking.”
“Bitcoin was created in 2008 as a protest against the financial system,” he said, adding that he opposes this unusual approach since it jeopardizes the banking consensus.
Satoshi Nakamoto, on the other hand, believes Bitcoin is required as an alternative to a currency debasement system. In effect, this implies that central banks do not act in the public’s best interests.
A ‘smart guy’
Following Gensler’s appointment as SEC Chair in March, the cryptocurrency markets were upbeat. “The fact that he understands the blockchain world is a plus,” IOHK Chief Executive Charles Hoskinson said.
“What I like about Gensler’s nomination is that he is qualified. He’s obviously a smart guy who thoroughly understands our field to the point where he lectured about it at MIT,” Hoskinson added.
However, Gensler’s refusal to drop the SEC’s action against Ripple, as well as a slew of other instances, including calls for more control, show that he isn’t in favor of free-market cryptocurrency reform.
Gensler has consistently stated that his job is to safeguard small-time investors against fraud and manipulation.
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