Gary Gensler, who attended the DACOM Summit 2021 event online, made important statements. The SEC Chairman, who previously made very moderate statements about blockchain and cryptocurrencies, is also known as the name that approved the first futures Bitcoin ETF. We see that he is no stranger to this field from the blockchain and Bitcoin courses he gave at MIT.

Acknowledging that stablecoins generate many benefits, Gensler acknowledges that they make significant contributions to the ecosystem. However, he does not hesitate to remind that stablecoins have some negative aspects as well as the advantages it provides.

The negative aspects, according to Gensler, are:

  • The convenience it provides for money laundering, Gensler thinks, is that some malicious people are comfortable using stablecoins for money laundering activities.
  • Tax evasion is another form of abuse of stablecoins. The free movement of money unregistered may cause greater tax losses to the states in the future.
  • In addition, the fact that stablecoin issuers are subject to ambiguous laws may also lead to losses that investors may experience in the future. President Gensler was also criticized on social media for not taking questions at the event he attended online.

The SEC Chairman Gensler

Gary Gensler believes DeFi can deliver "true innovation," but continues to argue that the industry cannot survive without regulatory compliance. Gary Gensler, Head of US Securities and Exchange, touched on some important details with Jay Clayton at the Digital Asset Compliance & Market Integrity Summit. The first of these is his comments about stablecoins.

While Gensler believes that decentralized finance can be the source of innovation, he argues it should fit into the current regulatory framework:

   “Innovation with DeFi may be real, but they won't last if they stay outside the regulatory framework”.

Gensler also expressed concerns about the centralization of some DeFi projects, implying that the goal of such projects may be to evade existing anti-money laundering laws.

So Gensler is also concerned about the exploitation of decentralization and the centralization of DeFis. Addressing crypto money companies that want to provide lending services, the SEC President gave the message "consult with us". Coinbase, which did this recently, was threatened with investigation by the SEC.