Ex US Commodity Futures Trading Commission chairman and SEC chairman nominee Gary Gensler, recently nominated by the sitting US President Joe Biden, dubbed blockchain and cryptocurrencies “a catalyst for change.”
Speaking in front of the US Senate Banking Committee, the former chairman of the CFTC tried to unearth a middle base between regulating the cryptocurrency industry and encouraging innovation. Gensler emphasized the many uses of blockchain technology, for example, the reduced cost of national and worldwide transactions, and the secure storing of medical data, documents, and financial data.
“I am neither a maximalist nor a minimalist, but I think that blockchain has come to be a catalyst for change. Bitcoin and subsequent cryptocurrencies have extended the access to financial services and gave us a fresh perspective to the payment system,” noted the future chairman of the SEC.
Nevertheless, Gensler said that cryptocurrencies raised a sensitive question of investor protection, that should be granted special attention. In the words of Gensler, if he is accepted to the post of head of the SEC, he will need to work not simply on the advancement of innovations. The agency will have to study in detail what should come under the US securities laws, and what exact investor protection laws must apply to crypto exchanges. This is required to avoid fraud with cryptocurrencies, and the SEC should stay “technology neutral”.
