The U.S. Securities and Exchange Commission boss told the European Parliament that cryptocurrency and fintech could be as destructive as the “Internet”

Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), almost appeared before the European Parliament to share his policy recommendations on the regulation of crypto assets.

Gensler delivered a speech at the Parliamentary Committee on Economic and Monetary Affairs on September 1st highlight The role of financial technology in the globalization of economic flows and the destruction of isolated national markets:

“I think the changes we are going through now may be as big as the Internet in the 1990s.”

Gensler emphasized that the $2.1 trillion cryptocurrency market is a “truly global” asset class, noting: “It has no borders or boundaries. It runs 24 hours a day, 7 days a week.”

Although Gensler basically insisted on the same professional regulatory script that he had been talking about for weeks, when Finnish politician Eero Heinäluoma asked Gensler about Gensler, he did turn to a new field. Environmental footprint related to crypto assets.

The politician pointed out that the Bitcoin network consumes more electricity than the Netherlands and Sweden, and exceeds “the total greenhouse gas emission reduction of electric vehicles.”

While describing the environmental damage of Bitcoin as a major “challenge”, Gensler pointed out that encrypted networks based on more energy-efficient Proof of Stake (PoS) (including Ethereum and Cardano) are becoming more popular, and concluded It is believed that concerns related to encrypted carbon emissions will focus on Bitcoin as the adoption rate of PoS rises.

The Chairman of the US Securities and Exchange Commission emphasized the need for development Robust public policy framework Balance support for crypto asset innovation and Decentralized finance Maintain strong investor protection.

Gensler emphasized that the DeFi platform “direct access to millions of investors,” and there is no broker to mediate between the public and the agreement, but pointed out that this brings a lot of risk. He stated that DeFi and cryptocurrencies are “full of fraud, scams and abuse” and emphasized the vulnerability of the investing public in the absence of “clear investor protection obligations on these platforms”.

related: The chairman of the US Securities and Exchange Commission warned that cryptocurrencies are too large to exist outside of public policy

The head of the SEC also highlighted the concerns related to stablecoins. It is estimated that nearly three-quarters of the crypto trading volume involves stable token pairings.

Gensler described stablecoins as helping “those who try to avoid a range of public policy goals,” including anti-money laundering safeguards and international sanctions.

“You have heard of Facebook Diem, but we already have an existing stablecoin market worth $116 billion,” he said.