Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), described cryptocurrencies as a “highly speculative asset class” today, and specifically for Bitcoin:
“Bitcoin; I think it is a digital, limited supply and speculative store of value.”
Speaking during a live interview with The Washington Post, Gensler added that the value of cryptocurrencies could “fall dramatically, rise dramatically.”
“There may have been a decrease in price last night, but it could have gone up. So I think it’s highly speculative.”
Regarding the securities issue, Gensler said the SEC has “great jurisdiction” when it comes to crypto tokens that “have the characteristics of an investment contract.” Continuing his speech, the SEC chairman also referred to crypto exchanges with the following words:
“You invest your money on a platform or an exchange. They also sell tokens, promising you a certain profit. This is an investment contract. Some cryptocurrencies can be securities, some are commodities, and some can be both. In these matters, we need to go especially in coordination with the Commodity Futures Trading Commission.”
In addition to these, he gave various messages about the future of regulations. Gensler had repeatedly stated in his previous statements that the market should be regulated. This time he emphasized:
“Congress said, “Let’s not get involved in fraud. I don’t think he will say “whatever they do”. Like I said, it’s a very exciting technology, so I’ve studied it for years. But while people are dreaming of a better retirement or a better vacation a year from now, they should also be kept away from the dangers that could happen to them.”
Lastly, he mentioned stablecoins as another notable part and compared these assets to poker chips in casino games.