America doesn’t need a digital currency, it already has a dollar ─ Suggests similarities between FTX and Binance: SEC Chairman Gensler | CoinDesk JAPAN | CoinDesk Japan

America doesn’t need a digital currency, Securities and Exchange Commission (SEC) Chairman Gensler said in an interview with CNBC on June 6.

“We don’t need a digital currency… we already have a digital currency. It’s called the US dollar,” Gensler said.

“For centuries, we have not needed more than one way for economies and peoples to move value.”

Lawsuit against two major cryptocurrency exchanges

Gensler also dismissed criticism that his approach was confusing the legal position around crypto assets, and filed a lawsuit against Binance CEO Changpong Zhao and FTX founder Sam Bankman. It also suggested that there are similarities between the criminal cases against Freed.

The SEC sued Binance on May 5 and Coinbase on June 6 for providing unauthorized brokerage, clearing and other services in relation to regulated securities. Gensler is trying to prove that the thousands of tokens available for trading on two major cryptocurrency exchanges are more like investment contracts that should be registered with the SEC, rather than mere payment instruments.

“What we have to show is that one of them is a security and that they should be properly registered.”

He added that the nature of securities laws “has been clear for years,” dismissing concerns that crypto firms continue to face opaque enforcement actions.

“These intermediaries must be compliant.”

Similarity to FTX

Gensler said Binance affiliate Sigma Chain “had inflated trading volumes and corrupted figures through lack of oversight,” with many now facing fraud and other charges. It added that it could “draw any analogy you want” to the case in which Bankman-Fried is pleading not guilty.

In an interview with Bloomberg TV on Monday, Gensler repeated a similar comment.

“There are similarities between FTX manipulation and the lawsuit against Sam Bankman-Fried and this Binance case. said Gensler on Bloomberg TV.

“A platform where the entrepreneurs behind the platform are trying to build wealth for themselves and their investors through affiliates, hedge funds, transactions against (the interests of) customers, or similar transactions. I’ll see you one after another

Gensler said the crypto industry needs to improve compliance and disclosure if it is to be successful in the future.

“Without it, the whole sector could collapse like a house of cards.”

The SEC complaint does not allege fraud by CEO Zhao, but seeks civil penalties and a permanent ban on him from serving as an officer or director of any securities issuer.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: SEC Chairman Gary Gensler (CoinDesk)
｜Original: US Doesn’t ‘Need More Digital Currency’ Because It Has the Dollar, Says SEC’s Gensler