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.
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.
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.
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.