Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), has faced criticism from the crypto community once again after stating in an interview with CNBC that “Bitcoin is not as decentralized as it seems.”
Crypto Space Rife with Fraud and Manipulation
When discussing whether Bitcoin involves fraud and manipulation risks, Gary Gensler pointed out that the crypto market is indeed rife with fraud and manipulation, not just by individual entities, but also due to the numerous bankruptcies of crypto institutions, leaving investors waiting outside bankruptcy courts.
Jamie Dimon, CEO of JPMorgan Chase, stated in a Senate hearing last December that the government should shut down Bitcoin, arguing that illegal activities such as money laundering are the actual use cases for Bitcoin.
Host Andrew Ross Sorkin mentioned Jamie Dimon’s comments at the time, while co-host Joe Kernen countered by stating that the money laundering share of the U.S. dollar far exceeds that of Bitcoin.
Gary Gensler, however, affirmed that Bitcoin is indeed the preferred token for ransomware, stating that this is a well-known fact.
Why Invest in Bitcoin? Because It’s a Good Ledger?
The following argument has drawn attention and criticism from many in the crypto community, as Gary Gensler claimed that Bitcoin is not as decentralized as it seems. However, co-host Joe Kernen disagreed, leading to a heated debate. Joe Kernen received praise from many in the crypto community for his stance.
Gary Gensler pointed out that throughout history, the financial system has always moved towards centralization, asking Joe Kernen, “Who comes on this show and says they want to invest in something because the underlying ledger and financial records are perfect? Joe, are you serious?”
Joe Kernen countered by saying that even if Bitcoin is just a ledger, it is a public, transparent, and almost tamper-proof ledger, which is why people trust Bitcoin more than central banks.
Due to the continuous interjection of questions from the three hosts, Gary Gensler’s argument about “Bitcoin centralization” seems to have been blurred. He was referring to the concentration of Bitcoin trading in specific venues, which contradicts Satoshi Nakamoto’s vision of decentralization.
He had previously emphasized similar viewpoints in interviews.
In addition, Gary Gensler remained tight-lipped about his comments on Ethereum spot ETF, emphasizing that he will never allow the public to anticipate such events.
Gary Gensler
SEC
Ethereum
Decentralization
Bitcoin
Spot ETF