Gensler Describes Bitcoin as Speculative but Unique in Exit Interview
Gary Gensler has stepped down as Chair of the SEC, concluding a tenure marked by extensive debates on crypto regulation and reforms in traditional markets. He highlighted key points regarding the crypto sector, particularly:
- Described crypto as a "highly speculative field" with compliance issues.
- Stated Bitcoin is not classified as a security, calling it a unique asset akin to gold.
- Pointed out the SEC's early initiatives on Bitcoin futures-based exchange-traded funds (ETFs).
- Acknowledged Bitcoin’s volatility, likening it to historical tulip mania.
- Faced scrutiny over the SEC's litigation-heavy approach, emphasizing investor protection.
Beyond crypto, Gensler noted significant achievements in traditional markets:
- Reduced the trade settlement cycle from two days to one day for equity markets.
- Collaborated with financial leaders to strengthen the US Treasury market.
- Focused on bipartisan reforms to manage risks in the treasury market projected to reach $36 trillion.
On regulatory matters, he reinforced the SEC's role in providing material information to investors, stating:
- “We’re not a climate regulator... we would ground it in just what’s material to investors.”
- Expressed concerns about risks associated with artificial intelligence and leverage in capital markets.
Gensler's departure raises questions about the future direction of crypto regulation under the SEC.