In a recent candid conversation with Bloomberg, Securities and Exchange Commission (SEC) Chairman Gary Gensler unveiled his apprehensions regarding the volatile nature of cryptocurrencies, notably Bitcoin and Ether.
Remarking on the same, Gensler highlighted,
“This is a highly speculative asset class,”
The comment outlined the rollercoaster-like price swings and also shed light on the SEC’s stance in this dynamic landscape.
The looming concerns
Amid mounting concerns over the reliability of cryptocurrency investments, Gary Gensler’s recent warnings proved timely. Further in the conversation, he also highlighted the volatile trajectory of cryptocurrencies, particularly citing the recent tumultuous journey of Bitcoin [BTC].
Gensler noted,
“One could just look at the volatility of Bitcoin in the last few days,”
He also compared Bitcoin’s movements to that of a roller-coaster, implying that the prices could fall anytime. This outlined the risky nature of cryptocurrency investments, especially for those who prefer stable financial options.
What’s more to it?
Gensler’s probing questions regarding the foundational stability of digital assets further raised pertinent concerns about the robustness of their infrastructure.
“How firm is the foundation of that? You know, you get to the top of that hill. How is the foundation underneath it?”
In conclusion, despite repeated inquiries, particularly regarding Ethereum’s regulatory classification, he said it depends on,
“The facts and circumstances as to whether the investing public is anticipating a profit based on the efforts of others.”