In a Tuesday interview with CNBC, U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler strongly stated his stance on digital currencies: "We don't need more digital currency."
In an era where investments have already become digital in many respects, Gensler questions the real underlying value of these crypto tokens.
He argued that the U.S. dollar, the euro, and the yen are already operating as digital currencies, and digital investments are represented in big tech and car companies, among others.
The declaration comes in the wake of recent legal action by the SEC against popular cryptocurrency platforms Binance and Coinbase, alleging these platforms operate under non-compliance with U.S. securities laws.
In its lawsuits, the SEC stated that a slew of cryptocurrencies, including Cardano (ADA), are unregistered securities.According to Gensler, platforms like Binance and Coinbase are "commingling a number of functions which in traditional finance we don't see." He drew a parallel between these platforms and the New York Stock Exchange, explaining that it would be unthinkable for the NYSE to also operate a hedge fund, make markets, and allow"'wash trading" — practices alleged to be common in the crypto platforms.
Gensler stressed that his concerns go beyond the platforms themselves, citing instances of potential deception, conflicts of interest, and evasion of U.S. law.
Gensler emphasised the importance of the SEC's work in ensuring transparency and protection for the investing public, stating that they're "going to do that which we can in front of the courts and make -- to the extent we can, make the facts known and the public protected."