Thus, he commented on a question from a member of the House of Representatives Ted Budd. It was about the possibility of following China’s path with regard to digital assets.
“Our approach is completely different. The question is how do we integrate this area (of cryptocurrencies) into the existing framework for protecting investors and consumers. How should we interact with other regulators to facilitate the work of the Ministry of Finance on combating money laundering and tax administration,” he explained.
Speech to Congress
During his speech to Congress, Gensler recalled that most cryptocurrencies, in his opinion, correspond to the status of investment contracts. And stable coins pose a threat to financial stability.
“Stablecoins worth $125 billion are like poker chips in a casino. If the market continues to grow tenfold, as in the last year, the segment will pose a systemic risk to the economy,” he stressed. At the same time, the head of the SEC avoided answering a direct question about the interpretation of Bitcoin and Ethereum.
“I will not discuss specific tokens. The securities laws are very clear. If you raise funds, if investors expect profits from the efforts of others, then this is subject to regulation,” he explained.
The topic of exchanges and DeFi regulations
Gensler also touched upon the topic of regulation of exchanges and DeFi.
“Even DeFi platforms have a centralized protocol. I believe that here we can get the maximum degree of public policy,” he added.
Recall that in September, Fed Chairman Jerome Powell announced that there were no plans to ban cryptocurrencies. At the same time, the head of the agency admitted the need to include some of them in the legal field.
Earlier, Gensler confirmed the conditions under which the SEC will approve the Bitcoin ETF.