U.S. SEC chair Gary Gensler fires new shots at crypto assets, specifically Bitcoin (BTC).
In an interview yesterday with CNBC, Gensler said Bitcoin is not as decentralized as many people believe it to be.
“It [BTC] is not that decentralized,” he remarked. “Look at how finance tends to centralization since antiquity.”
Unlike traditional payment methods, Gensler noted that Bitcoin has a handful of three to six exchanges.
“This is a field that's been rife with fraud and manipulation. Look at all the bankruptcies,” says SEC Chair @GaryGensler on #Crypto. “It's not just one entity. It's after entity after entity lining up in the bankruptcy court.” pic.twitter.com/8Vke1yD2n8
— Squawk Box (@SquawkCNBC) February 14, 2024
Bitcoin Has Leading Market Share in Ransomware
Furthermore, he blasted Bitcoin for being the token of choice for ransomware. He emphasized that everyone knows that Bitcoin has the leading market share in ransomware.
“It is (Bitcoin) the Leading market share in Ransomware. It is a token of choice for Ransomware.”
Notably, Gensler made this known when asked to comment on a statement made by JPMorgan Chase CEO Jamie Dimon about Bitcoin last year. Dimon said he would clamp down on Bitcoin and other crypto assets if he were the government. According to Dimon, Bitcoin’s true use case is associated with criminal activities like money laundering, drug trafficking, and tax evasion.
However, CNBC’s Joe Kernen disagreed with Dimon’s opinion during the interview with Gensler, saying that money laundering activities occur more in U.S. dollars than in Bitcoin.
Responding, Gesler blamed this on the widespread adoption of the U.S. dollars as a medium of exchange. In addition, Gensler asserted that Bitcoin does not have the support that fiats get from central banks.
Gensler Reiterates That Crypto Is Filled With Fraud
Furthermore, Gensler slammed the entire crypto industry as a sector filled with manipulation and fraud.
“This is a field that’s been rife with fraud and manipulation.”
According to Gensler, the fraudulent nature of crypto is reflected in the number of bankruptcy filings over the years.
“It’s not just one entity. It’s entity after entity after entity, and then investors are just lining up in the bankruptcy court,” Gensler remarked.
For context, several crypto firms have filed for bankruptcy over the years, including Terraform Labs, Celsius Network, Three Arrows Capital, BlockFi, Voyager Capital, and FTX, among others.
Meanwhile, Gensler slammed Bitcoin over a month after the U.S. SEC approved the listing and trading of 11 Bitcoin spot exchange-traded funds (ETFs).
During the interview, Gensler pointed out that approving multiple Bitcoin ETFs has nothing to do with giving existing BTC approval.
“This [Approving the ETFs] was not like an approval of bitcoin that existed. It’s just how to trade it in these exchange-traded products,” he said.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
