The U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler has been widely perceived as placing hurdles in the way of crypto businesses in the United States. However, macro guru Raoul Pal believes Gensler is not attempting to shut down all crypto enterprises in the country. Rather, Pal suggests Gensler’s selective bias towards some mainstream companies, such as Wall Street bank JP Morgan and asset manager Blackrock, has been harmful to the crypto market.
The approval of Gensler as SEC Chair by the Senate signals a focus on investor protection after a deregulatory period under the Trump administration. It still remains unclear how long it will take for U.S. regulators to establish a clear path for crypto regulation, especially with the uncertainty surrounding the upcoming 2024 presidential election.
Recently, the U.S. crypto market experienced major setbacks due to the SEC’s lawsuits against cryptocurrency exchanges Coinbase and Binance for alleged securities law violations. Meanwhile, Blackrock, the world’s largest asset manager, is filing a Bitcoin Exchange Traded Fund (ETF) application with the SEC, following the company’s launch of a spot Bitcoin private trust in 2022.
Pal’s views on Gensler’s actions in the crypto realm indicate that not everything is negative. Echoing XRP Lawyer John Deaton’s sentiments, Pal believes Gensler’s crypto enforcement is aimed at giving incumbents some market share before full-scale regulation comes into play. He asserts that Gensler’s approach is “all politics,” and part of an attempt to appease Wall Street by suggesting they are “more trusted.”
Additionally, Pal notes the recent SEC nod towards Blackrock’s BTC ETF proposal and the approval of crypto firm Prometheum as evidence of Gensler’s willingness to foster crypto growth.
Despite the mixed views on Gensler’s actions, it is crucial for investors to conduct thorough market research before putting their money into cryptocurrencies. The author and the publication hold no responsibility for personal financial losses that may result from investment decisions.
Source: Coingape
