Gary Gensler: Bitcoin is not truly decentralized and the recently approved ETFs are risky products

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Yesterday, SEC Chairman Gary Gensler was invited to CNBC to talk about Bitcoin, stating that it is actually not as decentralized and represents a risky investment for retail users.

There has also been discussion about the Ransomware market and the ways in which crypto is actually used nowadays.

BTC, however, does not seem to care about the words of the SEC commissioner and closed yesterday’s trading day with a +4.22% increase, surpassing the $52,000 threshold overnight.

Gensler speaks to CNBC and criticizes Bitcoin for not being truly decentralized

Yesterday in an interview with CNBC conducted by Andrew Ross Sorkin and Joe Kerne, the SEC Chairman Gary Gensler expressed all his contrasting opinions on Bitcoin and the topic of regulation in the United States, lamenting that he is facing a crypto asset that is not truly decentralized as described by the narrative of its followers.

The discussion started with the hot topic of Bitcoin spot ETFs, approved in January by the same Head of the Securities and Exchange Commission with 11 products launched on the market by the largest US Fund Managers.

Gensler explained that the SEC has approved these so-called “Exchange Traded Products” to allow investors to expose themselves to cryptocurrency through a regulated product, as the agency is “neutral on the merits” of an asset, but he himself does not approve of the underlying philosophy of Bitcoin.

With an emblematic phrase, he expresses all his disappointment towards the digital asset:

“This was in no way an endorsement of bitcoin”

Gensler, once he got started, continued to attack Bitcoin by stating that it is not as decentralized as it is claimed to be in reality.

His thesis is based on the fact that currently most of the trading volumes on crypto assets are generated by 6 cryptographic exchanges and that in no way can it claim to be decentralized within a financial system like the current one.

According to the first commissioner of the SEC, Bitcoin is “just a smart accounting ledger”, but it would need a central bank as support.

At this point, “Squawk Box” host Joe Kernen intervened to defend Bitcoin and its label as a decentralized distributed system from Gensler’s criticisms, stating that he trusts the currency’s blockchain more than central banks.

The discussion then continued on another front concerning the topic of cyber attacks and ransomware.

Gensler would have recognized a value in bitcoin solely as an asset that holds the “market share leader in ransomware“, which is often used for illicit purposes.

He emphasized the prevalence of fraud and manipulations in the cryptocurrency sector, citing numerous failures and investor losses.

Gensler also pointed out that Bitcoin does not have the support of the central bank and regulations aimed at preventing crime, unlike fiat currencies such as the US dollar.

Kernen wanted to counter the superficiality of the SEC chairman by wisely reminding that it is not the means that commit the crime, but the person who uses that means. These are his words:

“And then I think about how many things can be used in a harmful way. […] I mean, I can bring a car to a parade and then run someone over, but that doesn’t mean we shouldn’t have cars.”

Unleashed Bitcoin surpasses $52,000 overnight and aims for new highs

Despite Gensler’s accusations in which Bitcoin has been criticized for its alleged lack of decentralization and the ways in which it is used, the crypto asset doesn’t seem to care and soars for another bullish rally.

Yesterday, in fact, the crypto printed a +4.22% on the chart, bringing prices to a value that had not been recorded since December 2021, at the beginning of the previous bear market.

During the night, the level of 52,000 USD was reached, which marks a further local high and sets the stage for an attack on 60,000 USD.

Today’s morning started with a slight bearish stimulus, which could however be absorbed in a blink of an eye at the opening of the US markets.

The price action of Bitcoin is indeed linked to the moment by the netflow trend on new spot ETFs, which shape the levels of supply and selling pressure in the crypto market.

In the last few days we have witnessed a positive trend in this metric, with the major Fund Managers accumulating BTC at a rate 12.5 times higher than the coins issued by the daily block rewards.

From the point of view of short-term price analysis, we can see how BTC aggressively absorbs every dip, never allowing prices to fall below the 50 EMA on an hourly time frame.

The trend seems quite organic, with high volumes supporting the growth of the currency and giving good prospects for future movements.

The goal now is to maintain the $50,000 threshold without letting the bears regain this level, and aim for a breakout above $52,500.

The current open interest of 14.3 billion gives hope that the rally can continue for a few more days, with speculative interest being high at the moment.

However, we would like to remind you that this is the fifth consecutive month that Bitcoin has been experiencing an increase in its value and that the asset may start to be slightly overextended compared to its “fair price”.

The trend is clearly bullish, but the correction could be just around the corner.

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Bitcoin (BTC/USD) Hourly Price Chart