SEC Chairman Gary Gensler shared his views on Bitcoin and cryptocurrencies, noting that most of them apart from Bitcoin should be regarded as securities.

Cryptocurrencies and Their Classification

Speaking at an event hosted by New York University's School of Law, Gary Gensler expressed doubts about the widespread use of Bitcoin and other cryptocurrencies as payment methods.

Why Cryptos Are Not Suitable as Payment Tools

Gensler explained that for a currency to be viable, it needs to serve as a store of value, a medium of exchange, and a unit of account. He expressed skepticism about cryptocurrencies meeting these criteria and noted that countries typically rely on a single currency for payments.

Industry Perspective and Investor Warnings

Despite his critical views, Gensler mentioned that the SEC remains neutral regarding cryptocurrencies, and investors need to decide for themselves whether a particular cryptocurrency offers value. He also pointed out the significant number of fraud cases within the crypto industry.

Gensler's comments highlight ongoing concerns within the regulatory framework surrounding cryptocurrencies, as the SEC continues its efforts to clarify the nature of these digital assets.