SEC boss tells European Parliament crypto and fintech could be as disruptive as the internet

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Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has appeared virtually before the European Parliament to share his policy recommendations regarding the regulation of crypto assets.

Speaking to the Parliamentary Committee on Economic and Monetary Affairs on September 1, Gensler highlighted the role FinTechs play in globalizing economic flows and undermining siled national markets:

I think the transformation we are going through could be as big as the internet in the 90s.

Gensler pointed to the $ 2.1 trillion cryptocurrency markets as a truly global asset class, stating: It has no borders or borders. It operates 24 hours a day, 7 days a week.

While Gensler largely stuck to the same pro regulatory script he had been saying for weeks, he diverged in a new area when Finnish politician Eero Heinluoma asked Gensler about the environmental footprint associated with assets. cryptographic.

The politician noted that the electricity consumed by the Bitcoin network was greater than that of the Netherlands and Sweden and exceeded the total greenhouse gas emission reductions from electric vehicles.

While describing Bitcoin’s environmental toll as a significant challenge, Gensler noted the growing popularity of more energy-efficient proof-of-stake (PoS) -based crypto networks (which include Ethereum and Cardano) and concluded that concerns about emissions from Crypto carbon will become concentrated around Bitcoin as the adoption of PoS increases.

The SEC chairman emphasized the need to develop strong public policy frameworks to balance support for innovation in crypto assets and decentralized finance with maintaining strong investor protections.

Gensler pointed out that DeFi platforms provide direct access to millions of investors without the presence of a broker mediating between the public and the protocol, but stressed that this comes with big risks. He said DeFi and crypto were rife with fraud, scams and abuse, ”and highlighted the vulnerability of the investing public in the absence of clear investor protection obligations on these platforms.

Related: Crypto Is Too Big To Exist Outside Of Public Policy, SEC Chairman Warns

The SEC chief also highlighted concerns about stablecoins, estimating that nearly three-quarters of crypto trading volumes involve stable token pairs.

Gensler called stablecoins easier for those seeking to circumvent a host of public policy objectives, including money laundering safeguards and international sanctions.

You’ve heard of Facebook Diem, but we already have a $ 116 billion stablecoins market, he said.

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