SEC Chairman Gary Gensler has scrutinized Bitcoin and questioned its use case, despite approving a Bitcoin ETF earlier this year.
In an interview with CNBC today, Gensler clarified that the SEC's approval of Bitcoin ETFs is merit-neutral and not an approval of Bitcoin as an asset class. Gensler emphasized that cryptocurrencies are rife with fraud and manipulation, and that Bitcoin's current use cases are primarily focused on illegal activities.
Gensler further stated that Bitcoin is the leading market share for ransomware, and that its popularity is largely due to speculative investment. The SEC chairman compared Bitcoin to major national currencies such as the dollar, euro, and yen, saying there are substantial economic differences between cryptocurrencies.
Gensler also spoke out about ongoing fraud and losses by crypto companies, saying bankruptcies are becoming more common in the industry. Extending his criticism, the SEC chairman countered that Bitcoin is concentrated in a small number of actors and is not truly decentralized.
“Fraud and manipulation is rampant here. And look at all the bankruptcies. It's not just one entity. There's company after company, and investors are lining up in bankruptcy court. Only.”
– Gary Gensler
Asked about the outlook for Ethereum ETFs, Gensler agreed that the SEC currently has multiple filings. Still, he won't prejudge the decision, saying it will ultimately be up to the five-member committee.
