At a New York University event, SEC Chair Gary Gensler raises concerns about the future viability of cryptocurrencies as money, pointing out the need for use and transparency to provide real-world value.
SEC Chair Gary Gensler criticized the cryptocurrency industry during a question-and-answer period at New York University School of Law on Wednesday, saying that digital assets are unlikely to be used as currency in the future, according to multiple media outlets.
Gensler stressed that cryptocurrencies must demonstrate their worth through openness and usefulness.
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.”
Although Gensler refrained from discussing the potential impact of the 2024 U.S. presidential election on the SEC or his position, he seemed to poke fun at prominent figures in the cryptocurrency space who have recently been charged with crimes.
20% of Americans own or use crypto. There are tens of thousands of developers and builders.
— CEDAR Innovation Foundation (@CIFonX) October 9, 2024
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
“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.
In the cryptocurrency space, the SEC has taken enforcement action against a number of well-known people and organizations, including the exchanges Kraken, Binance, and Coinbase, as well as the scammers 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 collaboration further demonstrated the agency’s proactive enforcement strategy by leading to the filing of criminal charges against 15 people and three purported cryptocurrency market makers.
The outcome of the upcoming 2024 presidential election may have a significant impact on the regulation of cryptocurrencies in the United States, given the increased scrutiny surrounding Gensler’s regulatory stance.
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.
However, Kamala Harris, the Democratic nominee, has recently expressed her support for “innovative technologies” such as blockchain.
U.S. crypto policy may be significantly impacted by the election’s outcome, as national polls indicate a close contest.