During a question and answer session at New York University School of Law on Wednesday, SEC Chair Gary Gensler criticized the cryptocurrency sector, stating that digital assets are unlikely to serve as currency in the future, multiple media outlets report.
Gensler emphasized that cryptocurrencies will need to prove their value through transparency and practical us
Gary Gensler’s Views on the Future of Cryptocurrency
“It’s unlikely this stuff is going to be a currency,” Gensler said during the event. “It’s going to have to show its value through disclosure, through use.”
While Gensler did not comment on how the 2024 U.S. presidential election could affect the SEC or his role, he appeared to take a jab at leading figures in the crypto industry who have faced criminal charges in recent months.
20% of Americans own or use crypto. There are tens of thousands of developers and builders.
Big companies and small are creating hundreds of thousands of American jobs. These people should be encouraged not belittled. @GaryGensler isn’t just reductive, he’s not fit to do his… pic.twitter.com/XUHerAMT0g— CEDAR Innovation Foundation (@CIFonX) October 9, 2024
“With all due respect, the leading lights of this field…are either in jail or awaiting extradition right now,” Gensler remarked, alluding to prominent industry figures such as Sam Bankman-Fried and Do Kwon.
The SEC has taken enforcement action against several high-profile individuals and entities in the cryptocurrency space, including exchanges Kraken, Binance, and Coinbase, as well as fraudsters Bankman-Fried and Kwon.
“Just because people don’t like the law doesn’t mean there is no law,” Gensler added, reinforcing his stance on strict regulation.
The 2024 U.S. Presidential Election and Cryptocurrency
Gensler’s appearance in Manhattan coincided with the announcement of a joint collaboration between the SEC, the Federal Bureau of Investigation (FBI), and the U.S. Department of Justice (DOJ).
This partnership resulted in criminal charges against three supposed crypto market makers and 15 individuals, further signaling the agency’s active approach to enforcement.
As Gensler’s regulatory stance faces increased scrutiny, the future of cryptocurrency regulation in the U.S. may hinge on the outcome of the upcoming 2024 presidential election.
Republican nominee Donald Trump has vowed to fire Gensler and enact crypto-friendly policies should he win the presidency, recently warning during the launch of his family’s crypto platform, World Liberty Financial, that the crypto world would be “living in hell” if he loses.
Former President @realDonaldTrump warns of increased regulatory pressure on the crypto world if he’s not re-elected in 2024. What are the stakes for digital asset regulation? #CryptoRegulations #USPresidentialElectionshttps://t.co/QmO2ghujro
— Cryptonews.com (@cryptonews) September 17, 2024
“If for some reason bad, bad things happen and we don’t win the election, those people that were under investigation and that are free as a bird right now, people that were being looked at in the crypto world, they will be living in hell because it will start the day after the election if they win,” Trump stated.
On the other hand, Democratic nominee Kamala Harris has recently voiced support for “innovative technologies” like blockchain.
With national polls showing a close race, the election’s outcome could have a major impact on U.S. crypto policy.
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