Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), believes that Bitcoin (BTC) and other cryptocurrencies are unlikely to become widely used as a medium of exchange. Instead, they will be viewed as a store of value asset.
At an event at NYU Law School, Gensler was asked about the value of cryptocurrencies, which were created to operate independently of governments, if they were to be fully regulated. He responded that the SEC does not assess the value of cryptocurrencies, but rather allows investors to decide based on publicly available information.
However, Gensler emphasized that throughout history, countries have typically only used a single currency. He cited Gresham's Law, a monetary principle from the 19th century stating that "bad money drives out good money," to explain why each country only needs one currency. Therefore, he believes that cryptocurrencies are unlikely to become a widely used currency, and instead need to prove their value through transparency and utility.
Regarding fraud in this sector, Gensler also warned that the cryptocurrency industry is currently plagued by many scammers and schemes. He pointed out that many prominent figures in the industry are "either in jail or awaiting extradition."
