In a recent discussion, Gary Gensler – the present head of the Securities and Exchange Commission (SEC) – stated that major cryptocurrency platforms and exchanges need to embrace and cooperate with regulators if they wish to maintain their present levels of trust amongst customers. It’s a statement that arguably suggests Gensler knows absolutely nothing about cryptocurrency.
Gary Gensler Is All About Regulation
During the discussion, Gensler comments:
At about $2 trillion of value worldwide, [the crypto market is] at the level and the nature that if it’s going to have any relevance five to ten years from now, it’s going to be within a public policy framework. History just tells you that it doesn’t last long outside. Finance is about trust, ultimately.
To an extent, Gensler is right when he discusses trust. Trust is ultimately what makes companies and individuals alike flock to certain financial institutions, hoping to get a piece of the monetary action. They choose to utilize a certain firm’s products and tools because they trust it and those who run it.
This is exactly why so many people have turned their backs on traditional financial enterprises over the past year and a half. With so many governments and banks printing money like it grows on trees, countries like the United States have been suffering from inflation as of late, and the stupid financial decisions made by those in charge have had repercussions for everyone on the lower levels of the totem pole.
When it comes to crypto and their respective exchanges, there is no single person at the top of the ladder. In many ways, while these exchanges have become more centralized in recent years, they all operate under the same protocol: that those who trade crypto are the ones in charge. This has been the staple point of cryptocurrencies since they first emerged on the scene. Those who trade can make their own financial decisions and have control over their financial futures despite their histories or locations.
One of the big reasons why so many people have flocked to cryptocurrency exchanges is because of the lack of regulation. Should financial lawmakers have a say in how these firms operate and what people can gain access to their services, these firms would ultimately lose their power and standing given that they will become just like the many traditional financial firms that have already been established across the globe, and many customers will not have the independence or control they possess now.
“Beg for Forgiveness”
Gensler – who began his current position with the SEC last April – further commented:
Talk to us. Come in. There are a lot of platforms that are in operation today that would do better engaging, and instead there is a bit of… begging for forgiveness, rather than asking for permission.