{"id":49914,"date":"2021-09-22T10:15:55","date_gmt":"2021-09-22T07:15:55","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=49914"},"modified":"2025-09-02T15:05:03","modified_gmt":"2025-09-02T12:05:03","slug":"gensler-calls-stablecoins-poker-chips-in-a-wild-west-crypto-casino","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/gensler-calls-stablecoins-poker-chips-in-a-wild-west-crypto-casino\/","title":{"rendered":"Gensler calls stablecoins poker chips in a Wild West crypto casino"},"content":{"rendered":"

Chairman the SEC<\/span> Gary Gensler, in an interview with Washington Post<\/a>, drew analogies with the Wild West regarding consumer protection in the cryptocurrency market.<\/p>\n

The official noted that, in many cases, there is nothing behind digital assets, that they are merely a highly speculative class of assets. He drew parallels with the Free Banking Era of 1837\u20131863 and questioned the survivability of most cryptocurrencies.<\/p>\n

Gensler reiterated his belief that the overwhelming majority of them meet the status of a security, regulated by the SEC. He described as ‘comprehensive’ the powers of both the SEC and the CFTC<\/span>, but pointed to gaps, notably with regard to stablecoins. He allowed that such tokens may also have ‘investment-contract’ attributes.<\/p>\n

\n

“Stablecoins work like poker chips in a Wild West casino. There are many warning signs. We must act proactively,”<\/em> he commented.<\/p>\n<\/blockquote>\n

He suggested that both regulators would benefit from Congress’s backing in regulating and enforcing stablecoins. He acknowledged that the existing laws may require clarification with regard to cryptocurrency oversight.<\/p>\n

\n

“Frankly, I am very concerned that we will create problems if we continue to bring these enforcement actions. Lending and trading platforms will face difficulties, affecting the interests of many of their clients,”<\/em> the official warned.<\/p>\n<\/blockquote>\n

He stressed that, to ensure tax compliance, combat money laundering, and protect the ‘stability of the system,’ it is important to bring cryptocurrencies within the framework of public policy.<\/p>\n

Earlier in May, Gensler urged Congress to bring clarity to the regulatory framework for the crypto industry<\/a>.<\/p>\n

Later, the head of the Commission said that platforms offering access to tokenized shares must report<\/a> to the SEC.<\/p>\n

In August, Gensler warned of tighter regulation<\/a> of stablecoins and DeFi<\/span><\/a>. In his view, decentralization does not provide immunity from the Commission’s oversight<\/a>.<\/p>\n

In September, the regulator began examining the operation of DEX<\/span> Uniswap<\/a> and, according to media reports, several other DeFi-sector projects<\/a>.<\/p>\n

At the same time, reports emerged of the Coinbase-SEC conflict<\/a> regarding the announced launch of crypto-savings accounts based on USDC at 4% per year. Recently, the bitcoin exchange refused<\/a> to proceed with these plans after a regulator’s threat of a lawsuit.<\/p>\n

Recently, a coalition of US public-interest groups called on<\/a> the SEC to intensify its fight against cryptocurrencies, including regulation of stablecoins, lending platforms and Bitcoin exchanges.<\/p>\n

Previously, stablecoins have come under close scrutiny from<\/a> the Treasury Department. The agency is developing recommendations<\/a> for their issuers.<\/p>\n

Earlier, Gensler argued that regulation is necessary for the survival of cryptocurrencies<\/a>.<\/p>\n

Subscribe to ForkLog news on Facebook<\/a>! <\/p>\n","protected":false},"excerpt":{"rendered":"

Chairman Gary Gensler, in a Washington Post interview, drew an analogy with the Wild West regarding consumer protection in the cryptocurrency market.<\/p>\n","protected":false},"author":1,"featured_media":49915,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1269,1181,36,128,807],"class_list":["post-49914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrencies","tag-gary-gensler","tag-regulation","tag-sec","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=49914"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49914\/revisions"}],"predecessor-version":[{"id":49916,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/49914\/revisions\/49916"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/49915"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=49914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=49914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=49914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}