(Bitcoin) In a series of recent interviews and speeches, SEC chairman Gary Gensler referred to the crypto market as the “Wild West” due to its unregulated atmosphere and allegedly fraudulent, and predicted that these coins will fail.
Turn on… is a monthly opinion columnist for Marc Powers who has spent most of his 40-year legal career handling complex securities cases in the United States after joining the SEC. He is currently an Assistant Professor at Florida International University College of Law, teaching a course on Blockchain, Cryptocurrency and Regulatory Considerations.
In a September 21 interview with the Washington Post, Gary Gensler stated that “private currencies” historically have no lifespan. As discussed below, I disagree with this statement. After 5 months at the helm of this important government agency, Gensler is not only a powerful voice in the blockchain use case and regulatory debate, but also a dangerous problem.
The concern of the crypto industry is that Gensler is a very demanding and consistent man as well as being ambitious. Hailing from Wharton, Goldman Sachs, he previously worked in the US Treasury Department before becoming chairman of the Commodity Futures Trading Commission (CTFC), the SEC’s sister agency. While at the CFTC, he headed perhaps the only federal agency that carry out all of the requirements of the Sarbanes-Oxley Act of 2002. Unsurprisingly, his biography also includes serving as special counsel for co-author of that law, Senator Paul Sarbanes.
I was honored to know and work with another co-author of the Historic Code, Congressman Mike Oxley, while I was working at my BakerHostler law firm. Mike ran our government affairs practice while I ran our National Securities Litigation & Enforcement practice.
With this broad experience inside and outside our government, Gensler knows how to get his job done politically. In recent years he has also studied and taught in the blockchain courses at the Massachusetts Institute of Technology (MIT).
– Record Bitcoin (@DocumentingBTC) August 3, 2021
As I said or suggested in the previous columns, that’s a double-edged sword. On one hand, it would be nice to have someone in government who understands the technology and its useful use cases. On the flip side, his intelligence could be used to find ways to serve the interests and policies of the Biden administration, with Federal Reserve Chairman William Powell and Treasury Secretary Janet Yellen choosing to oppose them with cryptocurrencies, three of them can implement rules and guidelines that could harm the advancement and adoption of the technology.
It only gets worse when it does appoints Saule Omarova above Office of the Monetary Authoritybecause she has spoken out publicly against the use of digital assets. It would also be a complete reversal of the policy of her predecessor, Brian Brooks. Brooks proposed rules and guidelines to the Trump administration in the last few days that would enable federal banks to hold and deposit digital assets free for customers. Let’s see how long it took that Hawkish Omarowa to unleash this.
Advantages and disadvantages of introducing Bitcoin
At one level they cannot be blamed for being against Bitcoin (BTC) is accepted as an alternative digital currency or as a medium of exchange for the physical US dollar.
Its use around the world without government oversight or intervention may discourage them, and over time the US dollar’s dominance as currency reserves may dwindle worldwide. You need to maintain and protect the status quo of large financial institutions and intermediaries. They are relatively long-time government officials and they clearly believe that our government controls everything.
Whenever they apply rules and guidelines that hinder or regulate our operations, they always claim that this is in our interest, for example to protect us from fraud or inflation. But we know better, don’t we?
On the other hand, for those of us who believe in the promise of distributed ledger technology, in my opinion, the good news is too late. Like BTC, Ether (ETH) and other cryptocurrencies that move digitally from country to country around the world outside of any single country regulation, including the United States.
That’s right, let me say it again: it is too late. A country cannot kill it by banning its uses and activities, just as a country cannot regulate its use by global citizens to control BTC and its citizens. Bitcoin is currently a world currency owned and controlled by a country or currency group. It belongs to the citizens of the world.
Do you need proof of what I am saying?
Check out China, the country that has banned activities in cryptocurrencies many times over the yearseven though you don’t have the token. Now it again bans mining and trade. Did that complete the BTC crash? Are not. Instead, the mining industry turned to Eastern Europe and the United States.
Look at korea requires all crypto exchanges to register with his regulator last week. Dozens didn’t.
View of India, also prohibit the use of BTC, up to his Supreme Court reverse this law. Today the report of an August analysis by Chainanalysis, the India is currently second in the world in accepting cryptocurrencies.
Cryptocurrencies are inevitable
I have been saying since 2017 that I believe that we will have a dual economic and financial system in the near future. There will be a crypto world economy and a parallel digital fiat currency in the form of a digital central bank currency or CBDC, as Powell is working on in the states of the Federal Reserve and what China has implemented for its citizens in large cities. is called digital yuan.
Accordingly, I am questioning the SEC chairman’s history lesson when he said that private currencies don’t last long, which means that the same will apply to BTC. I disagree with his characterization. I don’t see BTC as a “private” currency. On the contrary, it is a World currency, very public and accessible to anyone with a smartphone or computer. It is not generated by a private blockchain or a blockchain that requires a permit, but rather on a blockchain that does not require a permit.
Although BTC is not a fiat currency created by a sovereign government, it is no less a medium of exchange for millions of people who use it every day around the world to buy things, send them to relatives in other jurisdictions and according to their price movements Act. Just like the daily trading of forex traders on the exchange rate development of the US dollar. If Gensler argues that BTC is not backed by anything, he may need to be reminded that the U.S. dollar has not been backed by gold since 1971.
Marc Powers He is currently an adjunct professor at the Florida International University School of Law, where he teaches “Blockchain, Cryptocurrency and Regulatory Considerations” and “Fintech Law”. He recently retired from Am Law 100, where he both built the national securities litigation and enforcement team and served in the firm’s hedge fund industry. Marc began his legal career in the SEC’s Enforcement Division. In his 40 years as an attorney, he has served on corporate representations including the Bernie Madoff Ponzi program, a recent presidential pardon, and the insider trading lawsuit against Martha Stewart.
Views expressed are those of the author alone and do not necessarily reflect the views of Cointelegraph or Florida International University College of Law or its affiliates. This article is for general informational purposes only and is not intended as legal advice and should not be viewed as legal advice.