You may have read one of these articles about the interview of Gensler (US SEC's Chairman) by the Washington Post. There are a few takeaways:
- Gensler said:
- "We've got a lot of casinos here in the Wild West and the poker chip is these stablecoins … at the casino gaming tables."
- "Private monies usually don't last that long. So, I don't think there's a long-term viability for 5,000 or 6,000 private forms of money. History tells us otherwise (…) So, in the meantime, I think it's worthwhile to have an investor protection regime placed around this."
- What does it means?
- The main issue for him is the principle of stable coin – e.g., USDT or USDC, and not the principle of cryptocurrency.
- He compares cryptos to "private monies"... However, Bitcoin and most of the altcoins are not private, but public. All the transactions and accounts can be publicly checked on the blockchain. Regarding the long-term viability of the 5k+ cryptos, many of them will indeed disappear in the next 10 years. The utility is the key factor. Gensler focuses on the cryptos which should be considered as securities instead of utility tokens and wants to set up protection rules. That’s good news, because it means the SEC will not ban cryptos but only regulate them.
- As a matter of fact, Gensler is a fan of blockchain technology. He taught this topic at the MIT: https://www.youtube.com/watch?v=EH6vE97qIP4
In summary, Gensler wants to protect investors but does not want to ban cryptos. For instance, he particularly focuses on stable coins and DeFi, but recognizes the interest of blockchain technology.
What can you do with those takeaways?
- Invest only in the cryptos which have a future, with solid fundamentals and utility (unless you just want to speculate in the short term, of course...)
- Cautiously invest into DeFi projects - first of all, because there are some risks and it will likely be regulated (so do not lock your coins for 2 years....)
- Be careful with stablecoins - it looks stable, but nobody can guarantee you that it will last forever (e.g., USDT might be affected by Evergrande...)
However, it is only my opinion. Please feel free to let me know your thoughts and DYOR before investing.
Click on the links below for more insight:
DeFi Pumps - MATIC, AVAX, SOL, FTM... - What's next?
Do we really need an Ethereum killer? Solana, Cardano and the others
DeFi news - The Good, the Bad and the Ugly - Avalanche, Solana and the others
Which Blockchains Are Really Decentralized? Bitcoin Vs Ethereum Vs Solana Vs Avalanche
Which DeFi is The Best? Personal user experience with Solana, Fantom, Avalanche and others
DeFi - Solana vs Avalanche vs Fantom vs Polygon - The battle of the giants
