SEC Chairman Gary Gensler criticizes Bitcoin and points to its role in ransomware.
SEC Chairman Gary Gensler has come under scrutiny for Bitcoin and questioned its use cases, despite the SEC approving a Bitcoin ETF earlier this year.
In an interview with CNBC today, Gensler made it clear that the SEC’s approval of a Bitcoin ETF is merit-neutral and does not constitute an endorsement of Bitcoin as an asset class. Gensler emphasized that cryptocurrencies are full of fraud and manipulation, and that Bitcoin’s current use cases are primarily focused on illegal activities.
Gensler also said that Bitcoin accounts for a major market share in ransomware and that Bitcoin’s mass appeal is largely due to speculative investment. Comparing Bitcoin to major national currencies such as the Dollar, Euro and Yen, the SEC Chairman said there are real economic differences in cryptocurrencies.
Gensler also expressed his opinion on the ongoing fraud and losses suffered by cryptocurrency companies, saying bankruptcies are becoming more frequent in the industry. The SEC chairman expanded on the criticism, saying Bitcoin is concentrated in a small number of companies, countering that it is actually decentralized.
“This is a place where fraud and manipulation are rampant. And look at all the bankruptcies. It is not just one entity. It’s businesses, businesses, businesses, and investors are lining up in bankruptcy court.”
– Gary Gensler
When asked about the prospects for an Ethereum ETF, Gensler agreed that the SEC currently has several applications. Still, he doesn’t want to prejudge the decision and ultimately it’s up to the five-member committee.