SEC Boss Gary Gensler Hails Satoshi Nakamoto’s Innovation

Divya  |  Aug 4, 2021

US Securities and Exchange Commission (SEC) chair Gary Gensler believes that the innovation started by Bitcoin’s pseudonymous creator Satoshi Nakamoto has real potential. The official said that the public sector wishes that the cryptocurrency fad would just go away, but the distributed ledger technology (DLT) can play a vital role in the financial system.

Gary Gensler Says Satoshi Nakamoto's Technology Has Potential 

On Tuesday, Gensler delivered a speech at the Aspen Security Forum, during which he talked about his teaching experience at the Massachusetts Institute of Technology (MIT). The SEC chair taught a course on blockchain  -- available on MIT’s website for free -- before his appointment in the Biden administration. 

“Before starting at the SEC I had the honor of researching, writing, and teaching about the intersection of finance and technology. [...] And in that work I came to believe that though there was a lot of hype masquerading as reality in the crypto field, Nakamoto’s innovation is real.”

Although Gensler praised their underlying technology, he maintained that none of the innovative private currencies “broadly” fulfilled the three functions of money: a medium of exchange, a store of value, and a unit of account. The official opined that these scarce, digital assets provided speculative stores of value to the people.

He also alleged that crypto-assets were used to evade anti-money laundering laws, sanctions, and tax regimes while pointing to their role in extortion schemes such as ransomware attacks. 

“As new technologies come along, we need to be sure we’re achieving our core public policy goals. In finance, that’s about protecting investors and consumers, guarding against the illicit activity, and ensuring financial stability,” Gensler noted.

Gensler’s Comments Draw Attention on Twitter

Some in the crypto community interpreted Gensler’s comments as an endorsement of the pioneer cryptocurrency. Twitter posts shared by Bitcoin maximalists suggested that the asset was the “only innovation” in the crypto sphere. 

Other crypto watchers contested these claims and asserted that Gensler was specifically referring to blockchain in his address. This argument holds considerable weight since Gensler stated that the digital asset class is “rife with fraud, scams, and abuse in certain applications.” The SEC boss has also asked congressional authorities to regulate the “wild west” of cryptocurrencies.

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