SEC Chairman Gary Gensler, who thinks that the majority of cryptocurrencies other than Bitcoin (BTC) are securities, made important statements about BTC and cryptocurrencies.
Gensler, who recently attended an event at New York University School of Law, said it was unlikely that Bitcoin or other cryptocurrencies would become widely used as payment.
The SEC Chairman stated that Bitcoin and cryptocurrencies cannot be used as a means of payment and will continue to be seen more as a store of value.
Stating that the SEC is neutral on crypto, Gensler said that the investing public will decide through the disclosures whether there is a benefit in investing in any cryptocurrency.
“Bitcoin and other cryptocurrencies are unlikely to become widely used as a form of payment. Instead, they will continue to be seen more as a store of value.
You want a currency unit because it’s a store of value, a medium of exchange, a unit of account. They all have a huge network economy except Bitcoin and cryptocurrencies, but crypto doesn’t have that.
So it is unlikely that BTC and cryptocurrencies will be a currency. It will need to show its value through usage. Like choosing among thousands of securities listed on an exchange.”
Stating that countries generally tend to use only one currency in payments, Gensler said that there are many fraud cases in the crypto industry and criticized it.
*This is not investment advice.