Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), again drew analogies between cryptocurrencies and the “wild west” and suggested that stablecoins are like poker chips.
Speaking to The Washington Post on Tuesday, Gensler noted that while most projects in the crypto space do business with securities that are under the jurisdiction of the SEC, other projects would be better suited to the Commodity Futures Trading Commission. Basics (CFTC). The SEC chief argued that the authority of both entities is “solid”, but there are gaps in the scope of their mandates, particularly with respect to stable currencies, which “may present the characteristics of investment contracts.”
Gensler said: “Stablecoins are taking over the exact role of poker chips in casinos right now. There are many casinos in the Wild West and stablecoins are like poker chips, “he explained.
The SEC chairman said the council’s assistance in regulating stablecoins will benefit both the SEC and the CFTC. On the other hand, Gensler argued that current laws are too broad to regulate modern financial instruments like cryptocurrencies.
“I am concerned that we will continue to impose sanctions, but that will be a problem. Credit platforms will be a problem for trading platforms. When that happens, I think a lot of people will get hurt. “
Before Gensler made the aforementioned statements, Coinbase, the US-based cryptocurrency exchange, announced that it was canceling its crypto loan program plans. The SEC had previously threatened the stock market with legal sanctions, saying the program would be a guarantee.