In an interview by the Washington Post on Tuesday, U.S. Securities and Exchange Commission Chairman Gary Gensler questioned the future of cryptocurrency, saying, “I don’t think there’s a long-term viability for five- or six thousand private forms of money. History tells us otherwise.” He added that “in the meantime, it’s worthwhile to have an investor protection regime placed around this.”
Fast facts
- David Ignatius, a columnist, interviewed Gensler at a Washington Post Live event as part of its ongoing series, The Path Forward, which comprises interviews with “leaders and change-makers across industries” on how to emerge and move from the pandemic.
- Gensler’s interview was a further examination of remarks he made Sept. 14 before the Senate Banking Committee on the need to regulate cryptocurrency.
- Gensler was also asked about risk to the U.S. economy from China’s highly leveraged real estate sector, which, Ignatius said, seemed to depress the value of Bitcoin and other currencies in the past week.
- Gensler responded that China and Hong Kong are two jurisdictions that do not comply with U.S. accounting oversight practices and policy and within the next three years if they do not come into compliance the U.S. will suspend the trading of the roughly 270 China-related companies that are raising money in the U.S.