Gary Gensler, the SEC Chairman, has voiced his skepticism over the likelihood of cryptocurrency becoming a common payment method. Instead, he sees cryptocurrencies more likely being a store of value. He mentioned that cryptocurrencies need to be in line with regulatory frameworks in order for their value to users to be determined. Gensler argued that enforcement actions are required to prevent financial fraud in the cryptocurrency industry, which he claimed to be filled with “fraudsters, grifters, and scams”. Gensler has confidence in the current regulatory framework, including the Howey Test established in 1940.
Gary Gensler criticized the cryptocurrency industry, highlighting the prevalence of fraud. He emphasized the importance of a regulatory framework to prevent these occurrences. Gensler’s views on the crypto space come from his role as the head of the SEC. According to him, the value of cryptocurrencies should be determined by their ability to conform to regulatory frameworks, a factor that could affect their viability as common payment methods.
Source: <strong>Gary Gensler</strong>