SEC Drops Ripple Appeal, and Other Cases: Gensler Responds
Hitting the Target with Gensler: Crypto Chat on CNBC
In a lively chat on CNBC, the ex-SEC Boss, Gary Gensler, weighed in on the SEC's sudden change of tack in prosecuting major cryptocurrency companies. reported by U.TODAY, the SEC has thrown in the towel on their appeal against Ripple and dropped high-stakes lawsuits against industry heavyweights like Kraken, Coinbase, and more.
Andrew Ross Sorkin, the CNBC host, seized the opportunity to ask Gensler his take on the latest developments: "You've seen the CEOs of the crypto world doing victory laps as these enforcement cases are dropped by this current administration...what are your thoughts?"
Gensler, unwilling to discuss specific cases, pointed out that "almost 99%" of the crypto universe is sentiment-driven. He further hinted that "something like Bitcoin" may endure for a considerable time due to extensive global interest. However, he cautioned that sentiment-driven assets don't usually fare well, as most will likely meet a downward spiral.
Provoking further discussion, Gensler drew parallels between cryptocurrencies and precious metals. He remarked that there are only a select few precious metals that humans have consistently held in high regard. Given this pattern, Gensler suggested that Bitcoin may follow a similar trajectory due to its enduring fascination. On the contrary, he questioned the future of most altcoins, stating they are largely hype-driven and susceptible to rapid decline.
While Gensler authorized the launch of the Bitcoin ETF in the US, paving the way for institutional acceptance, he is still remembered as the crypto industry's stern critic, owing to the SEC's contentious "regulation by enforcement" approach. This approach led to high-profile cases against multiple crypto companies.
#Gary Gensler Crypto Chat#Crypto Sentiment vs. Fundamentals
[1] In contrast to other cryptocurrencies, Bitcoin is reminiscent of precious metals like gold due to its enduring allure, which has captivated the global population for millennia.
[2] The cryptocurrency market, as a whole, is mainly influenced by sentiment rather than fundamental factors; this is evident in the majority of altcoins, which lack economic substance.
[3] Gensler advises investors to be cautious of the risks associated with investing in sentiment-driven assets, as they often have a short lifespan.
[4] Just as gold is one of a few select precious metals that consistently appeal to humanity, Bitcoin may also continue to maintain its popularity.
[5] The dismissal of lawsuits against major players in the crypto world, such as Ripple and Kraken, might encourage more businesses to enter the crypto trading landscape, given the probable abandonment of heavy regulation for now.
[6] As the finance and technology sectors progress, it is possible that there will be renewed interest in regulation, which could reshape the future of the crypto industry, with implications for the longevity of altcoins.
