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Gary Gensler, SEC Chair, condemns Bitcoin and highlights its involvement in ransomware attacks

SEC Chair Gary Gensler Raises Concerns Over Bitcoin’s Legitimacy

In a recent interview with CNBC, Securities and Exchange Commission (SEC) Chair Gary Gensler highlighted the need for a critical examination of Bitcoin amidst the agency’s approval of Bitcoin exchange-traded funds (ETFs) earlier this year. Gensler made it clear that the approval of Bitcoin ETFs should not be misconstrued as an endorsement of Bitcoin as a legitimate asset class. He expressed concerns about the prevalence of fraudulent activities and market manipulation in the cryptocurrency space, particularly in relation to Bitcoin.

According to Gensler, Bitcoin’s primary utility at present seems to be centered around illicit activities, such as ransomware payments. He underscored that the allure of Bitcoin for many investors lies in its speculative nature rather than its inherent value as a currency. Drawing a distinction between cryptocurrencies like Bitcoin and traditional fiat currencies such as the US Dollar, Euro, and Japanese Yen, Gensler emphasized the significant economic differences between the two.

Gensler also pointed out the increasing instances of fraud and insolvency within the crypto industry, citing a rise in bankruptcies among cryptocurrency companies. Furthermore, he questioned the notion of Bitcoin’s decentralization, suggesting that control over the cryptocurrency is, in fact, concentrated among a select few entities.

Regarding the potential approval of Ethereum ETFs, Gensler disclosed that the SEC has received multiple applications for such products. However, he emphasized that the final decision rests with a commission consisting of five members, indicating a cautious approach to evaluating the merits of Ethereum ETFs.

As the regulatory landscape for cryptocurrencies continues to evolve, Gensler’s remarks underscore the SEC’s commitment to scrutinizing digital assets and ensuring investor protection in an increasingly complex and volatile market environment.

It is essential for market participants and enthusiasts to stay informed and vigilant in light of ongoing developments in the crypto space, particularly as regulatory scrutiny intensifies and new challenges arise.

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