In a recent interview with CNBC, former SEC chairman Gary Gensler criticized the cryptocurrency market and the aggressive trade policy of the US government towards China.
Assessment of the Crypto Market
Gensler questioned the long-term value of most cryptocurrencies, stating that the market is primarily driven by sentiment rather than fundamentals. "Each financial asset trades on fundamentals and sentiment, but this field trades completely on sentiment and very little fundamentals."
Critique of US Trade Policy
Gensler also expressed dissatisfaction with the current US trade policy, particularly the government's aggressive approach to China. He believes that such strategies may lead to increased market instability and reduced investor confidence. According to him, current attempts to negotiate trade deals with other countries are counterproductive.
New SEC Leadership
The Securities and Exchange Commission recently appointed a new chairman, Paul Atkins, who promised to focus on regulating digital assets. His leadership aims at establishing a robust regulatory framework for virtual assets.
In conclusion, Gary Gensler provided important insights into the state of the cryptocurrency market and the need for a revision of US trade policy, emphasizing the importance of fundamental analysis and the necessity for effective regulation to protect investors.
