In a series of recent interviews and speeches, Gary Gensler, Chairman of the US Securities and Exchange Commission Call for the cryptocurrency market The “Wild West” predicts that the coin is doomed to fail due to its unregulated and suspected fraudulent atmosphere.
Turn on the power… It is the monthly opinion column of Marc Powers. For most of his 40-year legal career, he has dealt with complex securities-related cases after working with the US Securities and Exchange Commission. He is now an adjunct professor at the Florida International University School of Law, where he teaches a course on “Blockchain, Encryption, and Regulatory Considerations.”
In an interview with the Washington Post published on September 21, Gary Gensler stated that historically, “private money” has not had a long life. As described below, I disagree with this statement. Now that he has been leading this important government agency for five months, Gensler has not only made a strong voice in the debate around blockchain use cases and regulatory considerations, but he is also a dangerous man.
The worry of the crypto industry is that Gensler is a very smart and determined person, and ambitious. He comes from the Wharton School of Business and Goldman Sachs, and worked in the US Treasury Department before becoming the chairman of the Commodity Futures Trading Commission (CTFC), a sister institution of the US Securities and Exchange Commission.During the CFTC, he led what may be the only one to create and Implement All requirements of the Sarbanes-Oxley Act of 2002. This is not surprising, because his resume also includes a special adviser to the co-author of the legislative senator Paul Sarbanes.
I was fortunate enough to meet and work with another co-author of this historic legislation, Congressman Mike Oxley, at my law firm BakerHostetler. Mike leads our government affairs practice, and I leads our national securities litigation and regulatory enforcement practice.
Given our extensive experience inside and outside the government, Gensler knows how to get things done politically. In recent years, he has also studied and taught in Blockchain courses at the Massachusetts Institute of Technology (MIT).
— Documenting Bitcoin📄 (@DocumentingBTC) August 3, 2021
As I said or suggested in the previous column, This is a two-edged swordOn the one hand, it is good to have someone in the government who understands the technology and its beneficial use cases. On the other hand, his wisdom can be used to find ways to serve the interests and politics of the Biden administration. Fed Chairman William Powell and Treasury Secretary Janet Yellen are firmly opposed to cryptocurrencies. The three of them can implement rules and policies. This may be Damage to the advancement and adoption of technology.
If there is, the situation will only get worse Appointment of Saule Omarova lead Office of the Comptroller of the Currency, Because she publicly opposed the use of digital assets. This will also be very different from the policy of her predecessor. Brian BrooksIn the days of the decline of the Trump administration, Brooks proposed rules and guidelines that allowed the Commonwealth Bank to freely custody and custody digital assets for customers. Let’s see how long it takes this hawkish Omarova to solve this problem.
Pros and cons of adopting Bitcoin
On the one hand, you cannot blame them for opposing Bitcoin (Bitcoin) As an alternative digital currency or medium of exchange for the physical U.S. dollar.
Its use on a global scale without any government supervision or intervention will scare them, and over time, it may weaken the dominance of the dollar as a global reserve currency. They have the status quo of large financial institutions and intermediaries to maintain and protect. They are relatively long-term government agencies, and they obviously believe that our government will control things.
Whenever they adopt rules and policies that hinder our activities or try to regulate them, they always claim that it is for our own benefit, such as protecting us from rampant fraud or harm and protecting us for our economic interests Freedom from economic depression or inflation. But we know better, don’t we?
On the other hand, for those of us who believe in the future of distributed ledger technology, the good news is that, in my opinion, It’s too late. Method BTC, Ether (Ethereum) And other encrypted currencies that are digitally transmitted between a country/region beyond the regulations of a country/region, including the United States of America.
Yes, let me say it again: it is It’s too lateA country cannot kill it by prohibiting its use and activities, nor can a country regulate the use of BTC and its citizens in order to regulate the use of BTC and its citizens. Bitcoin is now a world currency and is not owned or controlled by any country or currency group. It is owned by citizens of the world.
Need to prove what I said?
Look at China, it has banned cryptocurrency activities Many times in the past few years, Although it does not own the token. Now it again bans mining and trading. Does this complete the demise of BTC? no. Instead, the mining industry has moved to Eastern Europe and the United States.
Look at Korea, Require all crypto exchanges to register Worked with regulators last week. Dozens of them didn’t.
Look at India, Also banned the use of BTC, Until the Supreme Court Overturned that lawToday, Chainanalysis’s August analysis report stated that India now ranks second Adopt cryptocurrency in the world.
Encryption is inevitable
Since 2017, I have been saying that I believe that sooner or later we will have a dual financial system and economy. There will be an encrypted world economy and a parallel legal digital currency in the form of central bank digital currencies or CBDCs, just like the work Powell did at the Federal Reserve and what China has already introduced to its citizens in major cities, called digital RMB.
Therefore, when he said that private currencies will not last, I disagree with the SEC Chairman’s history lesson, which means that the same is true for BTC. I disagree with his description. I don’t think BTC is a “private” currency.Rather, it is a World currency, It is very public and can be used by anyone with a smartphone or computer. It is not created by a private or permissioned blockchain, but by an unlicensed blockchain.
Although BTC is not a legal tender created by a sovereign government, it is also a medium of exchange used by millions of people around the world to buy things every day, send them to relatives in other jurisdictions, and trade according to their price changes. It’s like the daily trading of currency traders against the price movements of the U.S. dollar. When Gensler believes that BTC has no support, maybe he needs a lesson to remind that since 1971, the U.S. dollar is no longer backed by gold.
Mark Bowles He is currently an adjunct professor at the Florida International University School of Law, teaching “Blockchain, Encryption and Regulatory Considerations” and “Fintech Law”. He recently retired from a practicing position at the Am Law 100 law firm, where he established a national securities litigation and regulatory enforcement practice team and hedge fund industry practice. Marc started his legal career in the law enforcement department of the SEC. During his 40-year legal career, he participated in lawsuits including the Bernie Madoff Ponzi scheme, the recent presidential pardon, and the Martha Stewart insider trading trial.
The views expressed are those of the author and do not necessarily reflect the views of Cointelegraph or the Florida International University School of Law or its affiliates. This article is for general reference only, and should not and should not be regarded as legal advice.