Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), said that despite the origins of digital currencies in circumventing central authorities, decentralization cryptocurrency does not see it as an element of the market.
“Centralization in Cryptocurrency Market”
In his speech prepared for a virtual presentation at the Securities Industry and Financial Markets Association’s annual meeting in New York, Gensler said:
“Central agents tend to take advantage of scale, network effects, and access to valuable data. Although technological innovations have repeatedly disrupted established business models, centralization still tends to rise again.
We have even seen centralization in the cryptocurrency market, which is built on the idea of decentralization. In this area, there is actually a significant concentration among middle-market intermediaries.”
SEC chairman Gensler continued:
“Therefore, we must be alert to areas where concentration and potential economic rents are occurring or may occur in the future.”
Much of the digital assets industry was displeased by Gensler’s stance towards cryptocurrencies during his tenure as leader of the securities regulator. However, Gensler and Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), also differed from time to time.
Binary, CFTC bitcoin Although they seem to agree on expanding its role in regulating digital commodity markets such as
Gensler emphasized the importance of treating market participants alike, focusing on “price, service and other fundamental factors of competition” rather than market manipulation or “whether the game is fair”, without specifically mentioning cryptocurrencies.
*Not investment advice.
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