Gary Gensler: regulation is necessary for cryptocurrencies to survive
Cryptocurrencies will not last long outside of public policy, because "finance is trust". This opinion was expressed by Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC) in an interview with the Financial Times.
He stressed that regulatory frameworks are necessary for cryptocurrency platforms for their own survival.
Digital currencies must meet the same requirements to protect investors and combat illicit financial activity as traditional assets, Gensler explained.
The cryptocurrency market has already surpassed $2 trillion in capitalization, he said, and if it "has any relevance in 5 or 10 years, it will be within public policy."
"History tells us that outside of [the framework] it doesn't last long. Finance is ultimately about trust," the SEC chairman added.
Recall, Gensler took over the agency in April 2021. In May, he urged Congress to bring clarity to the regulation of the crypto industry.
Later, the head of the Commission said that platforms that offer access to tokenized shares need to report to the regulator.
In August, Gensler warned of increased regulation of Stablecoin and DeFi. In his view, decentralization does not provide immunity from SEC oversight.