Departing SEC Chair Gary Gensler Acknowledges Bitcoin’s Uniqueness While Criticizing Crypto Sector

In Brief:

SEC Chair Gary Gensler reiterates Bitcoin’s unique status, likening it to gold.

Gensler maintains that other cryptocurrencies lack clear use cases or fundamentals.

Gensler steps down next week, with Paul Atkins expected to adopt a crypto-friendlier stance.

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Gensler’s Perspective on Bitcoin and Crypto

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As Gary Gensler prepares to step down as SEC Chair, he has once again differentiated Bitcoin from the broader cryptocurrency market. Speaking on CNBC’s Squawk Box, Gensler likened Bitcoin to a global asset similar to gold, stating:

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"Bitcoin is a highly speculative, volatile asset… but 7 billion people want to trade it just like we have gold for 10,000 years."

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While recognizing Bitcoin’s potential, Gensler criticized other cryptocurrencies, asserting that they need to prove their use cases and underlying fundamentals to achieve long-term relevance.

SEC’s Regulatory Stance Under Gensler

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During his tenure, Gensler spearheaded a regulatory crackdown on crypto firms, often criticized as “regulation by enforcement.” He consistently labeled Bitcoin a commodity but remained hesitant to extend this designation to Ethereum or other digital assets, sparking controversy and debates on Capitol Hill.

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Despite the SEC’s approval of spot Bitcoin and Ethereum ETFs in recent years, Gensler’s reluctance to embrace most cryptocurrencies reflects his cautious stance on the industry.

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What’s Next for the SEC?

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With Gensler stepping down alongside President-elect Donald Trump’s inauguration, Paul Atkins is expected to take a more crypto-friendly approach as the new SEC Chair. Trump’s administration may push for regulatory alignment among agencies, potentially opening new opportunities for the emergent digital asset sector.

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