The Securities and Exchange Commission (SEC) Chairman Gary Gensler has anted up in his stance against cryptocurrencies, this time going all in against stablecoins. In an interview with the Washington Post, Gensler maintained his aggressive stance against crypto by saying stablecoins posed a danger to investors and had questionable long-term viability.
Gensler has dealt out another 'wild west' analogy, this time likening stablecoins to poker chips in a casino:
The poker chip is like the stable coin at the casino gaming table ... I think there's just a lot of warning signs and flashing lights
It is unsurprising that Gensler has dealt out further criticism of the crypto markets having been very public about his opinions on cryptocurrency networks saying most consumers are not educated enough to judge the risks themselves.
Despite continued affirmations by Gensler that he is speaking on his own accord, and not in the interests of the SEC, it is becoming increasingly difficult to disassociate an organisation and its lead chairman.
Nevertheless, the debate in Washington continues between proponents who believe stablecoins offer a more reliable store of value than other tokens which could transform payment processing for everyday consumers; and skeptics who believe issuers of stablecoins will fail to upkeep sufficient collateral for the assets.
Gensler's aggressive stance against stablecoins comes as both proponents and skeptics urge the US Government to roll the dice with crypto regulation. The SEC has not been shy about delving into crypto, particularly when trying to regulate the DeFi space or when targeting Ripple Labs.