In the wake of the enforcement actions taken by the U.S. Securities and Exchange Commission (SEC) against Coinbase and Binance, Chairman Gary Gensler recently expressed his belief that additional digital currencies are unnecessary. Speaking as a guest on CNBC’s “Squawk on the Street” program, Gensler underscored the fact that we already have digital currency, namely the U.S. dollar, the euro, and the yen, all of which are currently digital.
Gensler reiterated his viewpoint during an interview on CNBC’s “Squawk on the Street” program following the legal actions involving Coinbase and Binance, which were accused of failing to register as brokerages and selling unregistered securities. He stressed, “Look, we don’t need more digital currency. We already have digital currency. It’s called the U.S. dollar, the euro, or the yen, and they’re all digital right now. We already have digital investments.”
In its recent lawsuit against Coinbase and other enforcement measures, the SEC identified several digital tokens as securities. The complaint against Coinbase specifically mentioned ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, and MATIC as unregistered securities. In various other enforcement actions, the SEC classified XRP, TON, LBC, POWR, ALGO, OMG, SALT, TRX, BTT, UST, LUNA, and KROM, among others, as securities.
During his appearance on CNBC, Gensler criticized crypto trading platforms for combining multiple functions. He stated, “These trading platforms, which refer to themselves as exchanges, are commingling various functions. In traditional finance, we don’t see the New York Stock Exchange operating a hedge fund and making markets simultaneously.”
In contrast, Paul Grewal, Coinbase’s chief legal officer, expressed to Fortune that the SEC’s enforcement approach has negative consequences for the United States. Grewal stated, “The SEC’s heavy reliance on enforcement, without providing clear rules for the digital asset industry, is detrimental to America’s economic competitiveness and to companies like Coinbase that have shown a strong commitment to compliance.”
Gensler maintained that the SEC’s actions are in the best interest of the American public. He firmly asserted during the interview, “The investing public benefits from the U.S. securities laws. Crypto should not be an exception, and these platforms and intermediaries need to comply.”
Frequently Asked Questions (FAQs) about digital currencies
What are the enforcement actions taken by the SEC against Coinbase and Binance?
The SEC has taken enforcement actions against Coinbase and Binance for failing to register as brokerages and selling unregistered securities. They have identified several digital tokens as unregistered securities, including ICP, AXS, CHZ, FLOW, DASH, VGX, FIL, NEXO, NEAR, ADA, SAND, SOL, MATIC, XRP, TON, LBC, POWR, ALGO, OMG, SALT, TRX, BTT, UST, LUNA, and KROM.
What is SEC Chairman Gensler’s stance on digital currencies?
SEC Chairman Gensler believes that further digital currencies are unnecessary. He emphasizes that we already have digital currency in the form of the U.S. dollar, the euro, and the yen, which are all digital currencies at present.
How does Gensler criticize crypto trading platforms?
Gensler criticizes crypto trading platforms for combining multiple functions. He points out that in traditional finance, the New York Stock Exchange doesn’t operate a hedge fund while making markets, whereas these trading platforms, which call themselves exchanges, commingle various functions.
What is Coinbase’s response to the SEC’s enforcement measures?
Coinbase’s chief legal officer, Paul Grewal, believes that the SEC’s reliance on enforcement without clear rules for the digital asset industry is detrimental to America’s economic competitiveness. Grewal states that this approach harms companies like Coinbase, which are committed to compliance.
Why does Gensler assert that we don’t need more digital currencies?
Gensler argues that we already have sufficient digital currencies in the form of existing fiat currencies like the U.S. dollar, the euro, and the yen. He believes there is no need for additional digital currencies beyond what is already available.
More about digital currencies
- U.S. Securities and Exchange Commission (SEC): Official Website
- Coinbase: Official Website
- Binance: Official Website
- CNBC: Official Website
- “Squawk on the Street” Program: CNBC Page
- SEC Chairman Gary Gensler: Profile
- Fortune: Official Website