After suing the two largest cryptocurrency exchanges in the world, Binance and Coinbase, US CVM president Gary Gensler stated that the world does not need more digital currencies.
As an example, the chairman of the SEC indicated that the dollar, the euro and the Japanese yen are already digital. He went on to also point out that there are thousands of cryptocurrencies on the market, many with no clear use cases.
In the lawsuit against Binance, the SEC identified 12 cryptocurrencies as securities. In the case against Coinbase, there were 13, which was a replay between the two cases.
Gary Gensler believes the world already has the digital currency it needs
Gary Gensler, Chairman of the SEC, joined a conversation on CNBC this Tuesday (6) commenting on the two lawsuits against exchanges Binance and Coinbase, pointing out that the market is already saturated with cryptocurrencies.
“There are 10 to 20 thousand tokens”said Gensler. “We know that you can trade 16,000 tokens on the Coinbase wallet and there is a lot of discussion about the use cases.”
“We don’t need more digital currency, we already have digital currency. It’s called the US dollar. It’s called the Euro or the Yen, they’re all digital now. We already have digital investments.”
That is, it is hard to believe that the SEC has the budget to evaluate all of these cryptocurrencies separated by commodities or securities.
In this week’s trials, many projects analyzed were gigantic. For example, Binance Coin (BNB), Cardano (ADA), Solana (SOL), and Polygon (MATIC) are four of the top ten cryptocurrencies in the market.
Finally, Gensler points out that there are many companies raising capital through their own cryptocurrencies, but this is not true. This means that these entrepreneurs must comply with the existing rules.
SEC Chairman also talked about brokerage
While a panel showed shares of Coinbase and cryptocurrency Binance falling short, Gary Gensler also commented on the lawsuit over the two cryptocurrency exchanges.
When asked which process was more important, the SEC chairman declined to speak. However, it led to criticism of the industry.
“These trading platforms, they call themselves exchanges, combine a number of functions. In traditional finance, we don’t see the New York Stock Exchange operating a hedge fund creation market as well.”
Gensler then cites the Binance allegations, noting that Changpeng Zhao’s exchange engaged in wash trading and had little control over its own platform. “It’s a web of deceit and strife”noticed.
Finally, regulators have been putting pressure on the cryptocurrency market since FTX’s bankruptcy. In addition to Binance and Coinbase, the SEC also sued others such as Kraken in February and Bittrex in April this year.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
