Crypto is a truly global asset: US Sec chairman
Crypto is a truly global asset: US Sec chairman
The SEC chairman pointed out that crypto and fintech have the potential to grow as big in the 1990s as the Internet
Gary Gensler, Chairman of the United States Security and Exchange Commission (Sec) that the cryptocurrency market of 2 trillion was too large, and for survival alone must be integrated into the regulatory framework.
In a performance in front of the committee for economy and currency of the Parliament of the European Union, Gensler emphasized, such as Krypto and Fintech play a role in the globalization of economic flows, and explained that the technologies could be as great in the 1990s as the Internet.
The former professor of blockchain technology at the Massachusetts Institute of Technology said that cryptocurrency was a truly global asset and pointed out that "it knows no boundaries or limits. It is in operation 24 hours a day, 7 days a week."
The voice of the SEC chairman bears additional Last Since he was often identified as one of the few legislators who understands the blockchain and crypto industry who wanted to regulate governments all over the world so eagerly.
In accordance with his view that consumers are not well protected on the cryptom market, Gensler confirmed his regulatory -friendly attitude to the European Parliament and added that a robust public order and a strong regulatory framework were necessary to support innovations without affecting investor protection.
The SEC chairman explained how decentralized financial platforms (Defi), which enable direct access to investors and remove intermediaries, are associated with fraud and fraud risks due to the lack of "clear investor protection obligations on these platforms".
He also emphasized concerns about stable coins that, according to the regulatory authority, help those who want to "deal with a large number of public political goals", such as global sanctions and protective measures to combat money laundering.
When asked about the environmental concerns in connection with Bitcoin mining by Finnish politician Eero Heinäluoma, Gensler replied and admitted that the environmental costs of cryptocurrencies were a significant challenge. He further found that the electricity consumption of Bitcoin miners was higher than the electricity consumption of countries such as the Netherlands and Sweden and therefore cannot be ignored.
The regulatory authority, however, pointed out that energy-efficient technologies such as Proof of Stake (POS)--based crypto networks appear in the industry.
Gensler was recently in the News US Senator Elizabeth Warren had published his letter in which it was said that the SEC needed more supervisory authority for cryptocurrencies to better ensure consumer protection and to install protective measures against criminal activities.
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Source: Coinlist.me
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