SEC Chairman Praises These Altcoin Projects: He Called Them “Gambling”!

At the Crypto Compliance and Market Integrity Summit, which took place in the past hours, SEC chairman Gary Gensler said that cryptocurrencies cannot be permanent if they do not comply with the law. Stating that he has full confidence in DeFi altcoin projects, Gensler says that new technologies should integrate with the existing regulatory framework. Let’s take a look at Gary Gensler’s explanations that we have compiled.

SEC chief trusts DeFi-focused altcoin projects

Gary Gensler discussed sensitive crypto issues with SEC attorney Jay Clayton at the DACOM 2021 summit. While the SEC Chairman believes that the DeFi industry can be a source of innovation, he underlines the need for a regulatory framework. In one part of the session, Gensler made the following statements:

Innovation with DeFi may be real, but they won’t last if they stay outside the regulatory framework.

Gensler also expressed his concerns about the centralization of some DeFi altcoin projects. He hinted that some projects might come up with the intent to circumvent the law, as cryptocurrencies can be used as a method of money laundering. Speaking of his reluctance to approve when it comes to Bitcoin ETFs, Gensler says that some globally traded items are not included in the US regulatory register. The SEC chief also invited trading and lending platforms to “sit at the table”:

Trading and lending platforms are really important for investor and consumer protection. Come and talk to us… work with us. When appropriate, we use the enforcement tool. Work to register with the law.

Gensler’s “gambling” analogy was about stablecoins. The SEC chairman reiterated that stablecoins remind him of poker chips in a casino:

Stablecoins have made the ecosystem more efficient. But it also allowed people around the world to avoid money laundering and tax compliance in their jurisdictions for people trying to do so.

According to Gensler, stablecoins are responsible for 80% of the volume in the market.

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