Triggering a further downward trend in the market, US SEC chief Gary Gensler has a warning for investors. Lashing out, he even went to the extent of comparing cryptocurrencies to Poker chips. Gensler believes that cryptocurrency investments are unpredictable and investors have little to no security.
“We’ve got a lot of casinos here in the Wild West, and the poker chip is these stablecoins at the casino gaming tables,” said Gary Gensler. In his interview with Washington Post columnist David Ignatius, Gensler also said that a significant majority of cryptocurrency projects have been on the radar of the regulatory authority as they were dealing in securities. They have been strict with cryptocurrency investments.
“Stablecoins are almost acting like poker chips at the casino right now,” said Gensler. He also emphasised the need to bring in more regulations and stressed that Congress should work with regulatory authorities to create a more robust and effective tax framework and policies regarding crypto investments.
“I do really fear that we’ll keep bringing these enforcement cases, but there’s going to be a problem. There’s going to be a problem on lending platforms, on trading platforms. Frankly, when that happens, I think a lot of people are going to get hurt,” he explained.
Gensler, who had been welcomed by many in the crypto world, has been sharply criticizing cryptocurrencies lately. The SEC has also been very strict with blockchain companies and cryptocurrency investments. It even threatened to sue the world’s largest cryptocurrency exchange Coinbase for its offerings.