What did G. Gensler of the US Securities and Exchange Commission say to WaPo about stablecoins and Evergrande?


Gary Gensler, chairman of the Securities and Exchange Commission, showed his card. He talked with the traditional media operator “Washington Post” and hosted David Ignatius (David Ignatius) Their series “The Way Forward“And spilled beans. We at NewsBTC saw the entire interview, so you don’t have to. We have selected the most important quotes and presented them with their brilliance for everyone to read and draw their own conclusions.

Of course, we will provide our two cents. We are not made of steel. In general, though, you will hear what Gary Gensler said. They are shocking enough.

Gary Gensler directly focuses on stablecoins

Although the host David Ignatius has no questions about stablecoins, this topic is still in Gensler’s mind. The chairman of the US Securities and Exchange Commission raised this question many times. First, he said:

“Regarding the so-called stablecoins and how the banking institutions—we are also market institutions—coordinating, because these stablecoins may have the attributes of investment contracts, and have some attributes like banking products, but the banking authorities do not have the scope they need now. Very wide.”

But his organization not only considers stablecoins and tries to define them and isolate their attributes. They are preparing an official document:

“We are now working under the guidance of Minister Yellen and are preparing a report on stablecoins. In the field of stablecoins, I do think Congress will provide some help.”

This doesn’t seem so bad. Their report can conclude that stablecoins are a useful innovation and tool from which the entire financial system can benefit, right? Incorrect. This is Gensler and the SEC’s views on stablecoins, and pay attention to the language:

“These stablecoins are now almost like poker chips in casinos; so add to the Wild West analogy. I mean, we have a lot of casinos in the Wild West, and poker chips are these stablecoins on the casino table. “

For stablecoins, things seem to get interesting.

USDT Market Cap by Cryptocap | Source: USDT on TradingView.com

Does the SEC want crypto exchanges to register?

Look, there are no two ways. Gary Gensler hopes that all exchanges, including decentralized exchanges, will register with the Securities and Exchange Commission. In order to persuade them, he asked for communication to come to him:

“I think it would be better-a platform for trading securities, a platform for lending products, and a so-called “staking product”. I am happy to describe this to your audience, but where do you actually put your coins on the platform You will be rewarded if they come in. Let’s sort it out and figure out how best to get them to the periphery.”

Moreover, you may ask, what is the perimeter? Well, this sentence is very clear:

“In my opinion, out of 2 trillion, 5 or 6,000 projects, it is best in investor-consumer protection, tax compliance, anti-money laundering, and financial stability.”

This fits Gensler’s recent statement Regarding the necessity of encryption supervision:

“Gensler believes that if the market is to grow, it needs to be regulated. The SEC Chairman explained that regulation will provide trust in the market, which is important if the market does not want to become irrelevant over time. “Finance is ultimately about trust. ,” Gensler said. Gensler’s focus is mainly on the trading platform, because this is where most (about 95%) of the activities in the crypto market are carried out.”

Is Gary Gensler even a cryptocurrency enthusiast?

Since the new head of the US Securities and Exchange Commission once taught a course on cryptocurrency at the Massachusetts Institute of Technology, it is thought that he will become a legislator who supports cryptocurrency. Is he? Let us specifically read his views on this topic:

“I do think this new technology is very interesting-no matter who she is, Satoshi Nakamoto, it has brought about change. It is driving global central banks to reconsider how to provide payment systems. It is driving financial changes, the so-called “Fintech” refers to the intersection of new technology and finance.”

So, a private opinion. However, Gensler strongly believes that cryptocurrency should be included in the public policy framework. So strong that he said, “I don’t think technology will last long outside the social and public policy framework. ” and then, “I think it’s better to incorporate it into the public policy framework and ensure that we achieve these important public policy goals. “It came again later,”So, new technology is usually a good thing; it challenges the system. But I don’t think that new technologies really exist outside the framework of public policy for a long time.

Does this have anything to do with Evergrande?

A few days after us Notification situation, Evergrande Become one of the biggest stories this year. We explained that the company reportedly owed $300B. The most likely reasons were:

“Obviously, China Evergrande has fallen into a trap. The company is pre-selling apartments and using the money to fund other projects. In these projects, they also pre-sold apartments and then the cycle begins. Evergrande’s bonds were suspended, They may not be active again. They may be worthless. The stock is close to an all-time low and has fallen nearly 80% this year.”

Of course, Mr. Ignatius of The Washington Post had to raise this topic. He said that analysts are worried that there may be a “The spread of financial markets is like the failure of 2008 and Lehman Brothers in our memory.Then he asked: “If such a failure occurs, do you believe that our financial markets will be protected today, not necessarily against this company, but against any large company with this level of debt?

Gensler declined to comment on a Chinese company, which is beyond his jurisdiction. To this question, he answered:

“I do think that the reforms after the 2008 crisis have made the U.S. financial system stronger. This does not mean that we do not pay attention to the issues of the SEC and other important regulatory agencies (such as the Federal Reserve, banking regulators, and CFTC). Chairman. But I do think that we are in a better position to absorb some of these shocks in 2021 than before the 2008 crisis, but this does not mean that we are isolated. Our economies are interconnected on a global scale .”

Featured Image: Screenshoot from the interview | Charts by TradingView



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