SEC Chairman Rejects Bitcoin’s ‘Off-Grid’ Approach
It has been eight months since Gary Gensler was sworn in as the chair of the Securities and Exchange Commission and given his background teaching blockchain technology at MIT, many thought that he was the right candidate for the job. Because he would be able to understand the complex world of decentralization and why cryptocurrencies deserve a chance while becoming the head of the regulatory office.
While it is true that he has not been seen giving any negative press to Bitcoin or any other cryptocurrencies for that matter, but he says that he will not support the off-the-grid approach to finance that Bitcoin has. The very basis for the development and launch of Bitcoin back in the day by Satoshi Nakamoto was to further this off-the-grid approach to finance where no one knows the origin of the transaction, what does it carry and who the recipient is. This is also known as the decentralized approach, where no one state, entity, or regulatory office has any control over crypto transactions at all.
Bitcoin is a Direct Competition to the Conventional Financial World
He says that the advanced banking system that people see today has a 40-year-old history, and this system has been fighting money laundering and other such sanctions across the globe and still stands. Cryptocurrencies propose a threat to this system by decentralizing everything, thus giving opportunities to those money launderers or people who don’t want the state to meddle in their finances which they are going to use not for something good. Gensler is evidently against this off-the-grid approach that Bitcoin preaches so openly and stands for because it gives away the safety and security that people might have with the conventional mode of finance. It puts cracks into the financial system, which apparently took 40 years to mend in the first place.
Many people thought that Gensler would have been the one to further the advancement of cryptocurrencies securing such an important position, but that hasn’t been the case yet. Nothing new or significant has happened since he became the chair of SEC, but one thing is for sure that Bitcoin might not be able to get on the good side of SEC because of decentralization.