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In a viral 2018 video that resurfaced on social media recently, Gary Gensler, the current chairman of the U.S. Securities and Exchange Commission (SEC), likened cryptocurrencies to cash.
Crypto is cash
Gensler is no stranger to the world of crypto, having taught a course on blockchain technology and cryptocurrencies at the Massachusetts Institute of Technology (MIT) in 2018.
The video, which was taken during a lecture at MIT, shows Gensler stating that cryptocurrencies are "a new form of cash," and that they share many similarities with traditional forms of money.
He goes on to say that, like cash, cryptocurrencies are decentralised, borderless, and operate outside of the traditional banking system. In fact, he went as far as to say that:
“3/4 of the market are not ICOs or NOT what would be called securities”
Crypto Twitter is shocked
Crypto Twitter has been quick to react to Gensler's comments, with some expressing surprise that the chairman of the SEC would make such a statement.
The below clip is from a Fall 2018 Graduate MIT course called "Blockchain and Money"— zk-ð¦ (@ZK_shark) April 25, 2023
Gary Gensler - the current President of the SEC, was the professor.
The Hypocrisy speaks for itself ð
"So we already know in the US and in many other jurisdictions that 3/4 of the market… pic.twitter.com/rjRWeq5P8X
Securities debate reignited for crypto
However, not everyone is convinced that Gensler's comments are a sign that the SEC is ready to embrace cryptocurrencies. Regardless of where Gensler stands on the issue of cryptocurrencies, his comments have reignited the debate over whether cryptocurrencies should be treated as cash or as a new asset class entirely.
Some argue that cryptocurrencies should be regulated like traditional currencies, while others believe that they should be treated as a separate asset class with their own set of rules and regulations.
One thing is clear: cryptocurrencies are not going away anytime soon. As more and more people begin to embrace cryptocurrencies as a viable form of payment, it is likely that regulators will be forced to take a closer look at how they are treated under the law.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.