The chairman of the US Securities and Exchange Commission (SEC) Gary Gensler said; that his rich experience in the study of blockchain and cryptocurrencies will not be a reason for bias towards this innovative industry. Recall that before being appointed to his post in the SEC; Gensler taught a course on blockchain and Bitcoin at the Massachusetts Institute of Technology. The head of the financial regulator even called the crypt “a catalyst for change”.
As we have already noted, in his previous work, Gary paid a lot of attention to the connection between finance and technology; that is, he studied blockchain and digital assets. In this regard, many cryptocurrency lovers were delighted with the appointment of Gensler; which supposedly should improve the situation with the regulation of coins. However, apparently, one should not count on an exclusive attitude to the cryptocurrency niche.
How does the SEC view Bitcoin?
In a recent interview, Gensler pledged to remain neutral on cryptocurrency regulation. At the same time, he will focus on protecting the rights of users of digital assets. Here is a quote from him:
“If somebody wants to speculate, that’s their choice; but we have a role as a nation to protect those investors against fraud”.
So, in this case, Gensler again spoke about the possibility of losing money on cryptocurrencies for novice investors. Accordingly, the SEC is likely to take the same stance on coins as before.
Gensler’s first priority will be to regulate large crypto exchanges. This is an important task for the SEC; as two platforms in this category are available to Americans – namely Coinbase and Binance.US – process billions of dollars in trade transactions every day.
Meanwhile, a new trend has formed on the exchanges: a strong outflow of Bitcoins over the past few weeks with a parallel increase in transaction activity. Ki Young Ju, CEO of analytics platform CryptoQuant, notes that all these factors characterize the increased popularity of OTC transactions.
Recall that OTC trading is transactions that are concluded directly between two parties without intermediaries in the form of cryptocurrency exchanges. OTC trading has become very popular in the past year, when large investors began to actively invest in the crypto market. Since such transactions are carried out outside the exchanges, they do not create pressure on the asset. Roughly speaking, OTC transactions look like ordinary coin transfers that are paid for offline. As a result, such operations do not affect the rate of cryptocurrencies in any way.
We believe that both news – namely the words of Gensler and the activity in OTC trading – will have a positive impact on the crypto market in the near future. In the first case, we can count on democratic and useful regulation, and in the second, on the increased appetite of large investors for Bitcoin.
Be that as it may, now the digital asset niche is still awaiting new initiatives from the Commission. I would like to believe that they will not contradict common sense and will help the development of blockchain projects in the United States.