Gary Gensler, president of the SEC or Securities and Exchange Commission of the United States; said the crypto industry hype reminds him of the dotcom bubble, and calls for its regulation.
Gary Gensler, Chairman of the US SEC, looks back on the 1990s and the dot-com bubble
The president of the SEC (United States Securities and Exchange Commission); He said that the buzz he hears today regarding crypto currencies reminds him of the dot-com craze of the late 1990s and early 2000s.
In his latest prepared statement, Gary Gensler argued that the widespread appeal of crypto currencies in commercials recently featured in the development of the Super Bowl need not guarantee the future success of the nascent technology.
Gensler began his statement by saying that, during the past month of February; it was possible that everyone has noticed the advertising displayed in Super Bowl for the promotion of various crypto platforms. It was not the first time that certain innovations were seen in the biggest television event of the year.
Advertising in the Super Bowl did not guarantee the success of many companies in 2000
He went on to point out that seeing those commercials reminded him that, during the run-up to the financial crisis, AmeriQuest (a subprime lender) advertised in the Super Bowl. The company disappeared in 2007. And some years before that, according to the Axios firm; 14 dot com companies advertised in the 2000 Super Bowl, most of those companies don’t exist today either.
The SEC chairman said in his statement that he was aware that many at the time may have been young children at the time; but the internet was pretty new during the year 2000. But the bursting of the dot-com bubble made the market shake very hard.
Advertisements, therefore, do not necessarily mean credibility. There is a lot of innovation in the crypto industry , but a lot of hype, Gensler said.
Let us remember that for this year what most caught the attention of the public during the development of the Super Bowl, was the large number of advertisements related to Bitcoin and cryptocurrency exchanges in the event.
According to the chairman of the SEC, those who believe in cryptocurrencies should be registered with the Securities and Exchange Commission
The SEC chairman argued that in order to better separate legitimate innovations from hype; very strict cryptographic regulations are required. According to Gensler, people who believe in digital currencies should be required to register with the Securities and Exchange Commission; in the same way that public companies do them.
For this reason, the senior official thinks it is extremely important to work so that cryptographic tokens, which are also securities, are registered with the SEC. Issuers of crypto currencies that are securities should register their offerings and sales of said assets with the SEC . In addition to complying with the disclosure requirements required by the Commission, or complying with an exemption.
Since issuers of all classes in a wide variety of markets register with total success and offer disclosures every day, the SEC chairman added.
The crypto sector can provide new ways for entrepreneurs to receive capital and for investors to trade; however, protection for investors and the market is still needed , Gensler concluded.