{"id":10483,"date":"2021-09-21T21:51:10","date_gmt":"2021-09-21T20:51:10","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=10483"},"modified":"2021-09-21T21:51:19","modified_gmt":"2021-09-21T20:51:19","slug":"sec-chairman-gary-gensler-compares-stablecoins-to-casino-poker-chips","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/sec-chairman-gary-gensler-compares-stablecoins-to-casino-poker-chips\/","title":{"rendered":"SEC chairman Gary Gensler compares stablecoins to casino poker chips"},"content":{"rendered":"\n
Gary Gensler, the chairman of the United States Securities and Exchange Commission<\/a>, (SEC), has expanded on his \u201cWild West\u201d analogy for cryptocurrencies, calling stablecoins \u201cinstruments for gambling at old-timey casinos.\u201d<\/h5>\n\n\n\n
\"SEC<\/figure>\n\n\n\n

Gensler told Washington Post columnist David Ignatius on Tuesday that most crypto projects\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> dealt with securities that came under the SEC's regulatory ambit, while others were better suited for regulation by the Commodity Futures Trading Commission, or CFTC.<\/p>\n\n\n\n

The SEC chair called both agencies' authority “strong,” but noted that there were gaps in coverage, particularly for stablecoins, which “may have characteristics of investment contracts.”<\/p>\n\n\n\n

\u201cRight now, stablecoins are virtually acting like poker chips at the casino,\u201d Gensler remarked. \u201cWe have a lot of casinos here in the Wild West, and the poker chip at the casino gaming tables is these stablecoins.\u201d<\/p>\n\n\n\n

In terms of stablecoin regulation and enforcement<\/a>, Gensler intimated that both the SEC and the CFTC might benefit from \u201chelp from Congress.\u201d<\/p>\n\n\n\n

However, according to the SEC chair, present laws appear to be overbroad when it comes to dealing with a new financial asset like cryptocurrency.<\/p>\n\n\n\n

\u201cI do really fear that we\u2019ll keep bringing these enforcement cases, but there\u2019s going to be a problem. There\u2019s going to be a problem on lending platforms, on trading platforms. Frankly, when that happens, I think a lot of people are going to get hurt.\u201d<\/p><\/blockquote>\n\n\n\n

Following the announcement by major U.S.-based cryptocurrency exchange Coinbase that it would cancel its proposal for a crypto loan scheme, the SEC chair issued a statement.<\/p>\n\n\n\n

The Securities and Exchange Commission had previously threatened legal action <\/a>against the exchange, claiming that the program was a security.<\/p>\n\n\n\n

Gensler wanted to implement crypto-related policy changes in the areas of token offerings, decentralized finance, stablecoins, custody, exchange-traded funds, and lending platforms in August.<\/p>\n\n\n\n

He has long urged crypto ventures to register with the SEC, emphasizing that they must collaborate with regulators in order to thrive in the long run.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gary Gensler, the chairman of the United States Securities and Exchange Commission, (SEC), has expanded on his \u201cWild West\u201d analogy for cryptocurrencies, calling stablecoins \u201cinstruments for gambling at old-timey casinos.\u201d Gensler told Washington Post columnist David Ignatius on Tuesday that most crypto projects dealt with securities that came under the SEC’s regulatory ambit, while others […]<\/p>\n","protected":false},"author":12,"featured_media":10499,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[4544,1920,143],"class_list":["post-10483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-casino-poker-chips","tag-gary-gensler","tag-sec"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/09\/SEC-chairman-Gary-Gensler-compares-stablecoins-to-casino-poker-chips-scaled.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/10483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=10483"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/10483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/10499"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=10483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=10483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=10483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}