Gary Gensler Outlines Pros And Cons For The Crypto Industry

Gary Gensler, a nominee of the SEC, recently stated that he believes cryptocurrency may actually be quite beneficial, however, he did stress the utmost importance of preventing any malpractice or any fraudulent activities which could potentially bring harm to investors and the economy itself. To this end, he reiterated the importance of the Securities and Exchange Commission in ensuring that these kinds of harmful activities would not take place and that consumers’ interests are protected whilst simultaneously making sure that cryptocurrency is made available and accessible by all interested parties.

Gensler himself is quite well known in the world of finance and cryptocurrency, as he not only teaches this subject at the MIT Management Sloan School, but he rigorously studies it from a legal perspective as well. So, his opinions on the subject matter do carry weightage; in fact, Gary has previously contributed to the Dodd-Frank Act, which was vital to restabilizing the United States economy following the crisis of 2008.

In terms of the positive aspects, Gary did highlight the main reason as to why the cryptocurrency craze began in the first place. He calls it a ‘catalyst for change,’ and rightly so. To this end, he also realized the need for the formation of new and improved legal documents and instruments which can be utilized to protect investors while also not adversely affecting innovation. He further said that cryptocurrency has ushered in a new era of financial inclusion and innovation regarding payments and transactions.

Although Gary has highlighted some definite positive aspects regarding cryptocurrency, a number of long-term investors are concerned about his interventionist-like approach. Furthermore, there was also some confusion regarding his comments about both XRP and ETH acting as securities. This is because Ethereum would not be categorized as being decentralized enough in order to be secure, and XRP is currently also in the midst of disputing the claim.

Ultimately, despite Gary’s opinions regarding factors that may be both positive as well as negative, we still cannot take any of what he says as guaranteed. It is mainly due to the fact that nothing has been set in stone yet, and his policies have yet to be approved. Only time will tell whether his approach will be for the benefit of everyone or to their detriment.