SEC Chair Gensler: Clueless About Cryptocurrency

It is evident that the chair of the SEC, Gary Gensler, is completely clueless about cryptocurrency. We all know he is against it yet it also appears that he really knows nothing about it. This is a problem since he is in such a powerful position.

Nevertheless, this is commonplace these days. Governments are filled with politicians and bureaucrats who have a lot of power but very little sense. He certainly epitomizes this.

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In a recent interview with the Washington Post, Gensler claimed that he doubts the longevity of cryptocurrency. He, naturally, feels that it is highly speculative and requires a lot of regulation.

No surprise considering he nothing more than a former banker who taught cryptocurrency at MIT.

Technology Changes History

The Chair claims to be open to innovation and technology. Of course, here again he seems to be ignorant of what it does.

Here is a statement from the interview linked above:

So, public money has a certain place around the globe. Private monies usually don't last that long. So, I don't think there's a long-term viability for five- or six thousand private forms of money. History tells us otherwise. So, in the meantime, I think it's worthwhile to have an investor protection regime placed around this.

History often "tells us otherwise" until something changes it. This is often technology. We see this happen all the time. What occurred 6 or 7 times in the past suddenly is no longer the case.

Remember, the past does not equal the future.

For example, there was never a time in human history where information could flow around the world at near instantaneous speed for free. That was absolutely preposterous right up until the 1980s. Since that point in time, does anyone question this concept?

So the Chair does not seem to think that 5 or 6 thousand private forms of money can survive?

Isn't that ironic that it is right around the same time that Mayor Suarez is updating everyone on MiamiCoin. He stated that the City of Miami is receiving about $2,000 every 10 minutes. This is money that was converted to USD and is sitting in the City's coffers. To date, it is about $5 million since the project started.

The Mayor further goes on to state:

“It’s interesting because it’s not an involuntary tax, it’s not philanthropy, it’s something that is completely different and could revolutionize the way governments are funded in the future.”

“It’s theoretically possible that the city could generate enough taxes through MiamiCoin so that our residents don’t have to pay one cent in tax.”

Isn't that something?


It is important to point out that even though Miami is a government entity, the money is consider private since it is not generated by the Central Bank. Thus, even though the City did the project, the money is created privately.


So we have the Mayor of Miami theorizing about citizens not having to pay taxes while the SEC Chair is saying he doubts whether 5K-6K private currencies can survive. This can only make us wonder how long it takes for other municipalities and towns to get onboard with the idea. It is possible we see that thousands successful currencies globally under this program alone.

We then have a concept that is known as the Lindy Effect. Here we see the idea of a non-perishable item such as technology will have a longer life expectancy as it ages.

This from Wikipedia:

The Lindy effect (also known as Lindy's Law[1]) is a theorized phenomenon by which the future life expectancy of some non-perishable things, like a technology or an idea, is proportional to their current age. Thus, the Lindy effect proposes the longer a period something has survived to exist or be used in the present, it is also likely to have a longer remaining life expectancy. Longevity implies a resistance to change, obsolescence or competition and greater odds of continued existence into the future.[2] Where the Lindy effect applies, mortality rate decreases with time. Mathematically, the Lindy effect corresponds to lifetimes following a Pareto probability distribution.

Naturally, we can see how this is in play with cryptocurrency. Bitcoin is more than 12 years old and is only getting stronger. Few doubt that this will not continue for decades ahead. At the same time, other cryptocurrencies are only getting stronger as their platforms expand.

Cryptocurrency is a technology that is presently used by 225 million people. It is also seeing massive adoption, meaning we could be near the 300 million mark by the end of the year.

Protecting The Bankers

People like Gensler often cite investor protection. This is total nonsense. The only ones they want to protect, at least in the United States, is the banking industry. It is no surprise since, guess where Gensler got his start: Goldman Sachs.

Of course, what is a good story without some ironic twist?

Most are aware the SEC has denied every application for a Bitcoin ETF to date. This certainly is not solely on Gensler since it happened under previous Chairs. However, the policy has not shifted under him either.

Here is where the twist enters the picture.

If Gensler is so anti-Bitcoin and cryptocurrency, why would he not stand up against a Bitcoin Futures ETF? There is speculation that this will be approved by the end of October. Canada already approved ETFs and is expanding the offerings that are legal.

So now Gensler is somewhat warm to an ETF as long as it is tied to the futures? This is where we see the bankers in control.

Gensler knows what took place with the futures market in silver. For decades banks were found to be manipulating the price. They were fined and carried on. The same could be true of Bitcoin.

Hence, the Chair is not dulling the edge he has against Bitcoin. Instead, he is just sharpening it. He is well aware that banks will make a fortune manipulating the market while also likely making the price action unappealing to most. In the end, average investors will lose while the banks gain.

This is what ex-Goldman Sachs employees who are appointed to government oversight positions do.

We are not dealing with the idea of protecting investors. There is nothing here that is looking out for the best interest of the average individual. Instead it is merely a way to favor those who corrupted the establishment for decades.

Of course, there is another ironic twist. Bitcoin is not the only game in town. While it is the largest, by market cap, and most established, innovation is not stopping. As the development in cryptocurrency expands, we are going to see the entire scope of things widening. This is something that the Chair does not appear to understand.

The fact that cryptocurrency is technology means that it follows predictable patterns. One of them is that if it is dammed up, it will only make the impact when the dam burst that much more powerful. Technology is like water in that it just builds until it overwhelms whatever is in front of it. It is why things are very slow for long period of time and then an exponential elbow is hit. The existing players try to keep the status quo until the force gets to the point where they are obliterated.

It is impossible to know when that elbow is hit. We are looking at massive growth in the past few years. How many more will it take? That is hard to say. We do know this is something that is taking place global, with players from many different countries involved. As we see with Mayor Suarez, we also have governments starting to stake their claim.

All of this will eventually overrun people like Gensler. Our defense is still developing in ways that they cannot attack. Simultaneously, we keep pushing adoption to the point that the numbers are simply impossible for them to deal with.

SEC Chair Gensler is clueless about cryptocurrency because he doesn't want to truly know. He is only concerned about maintain the status quo for the banking industry. Fortunately, technology is moving in the direction where people like him will be less relevant in the future.


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I wonder how much these guys actually believe their statements. Does he thinks that parallels between two things mean that they are identical. "It's like the wild west", yeah, in some ways, but it's also really really not like that at all. I love how they use this "keeping us safe" excuse, while meanwhile regular people can't participate in IPO's and ICO's and the bulk of the gains go to institutions.

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It is debatable in general, if the fact that this one (out of 1000) crazy guy who sold his house and grandma for the latest investment idea (and got bankrupt) is sufficient proof for regulation in order to safe investors. 999 guys that also bought into the idea and lost some of their risk capital had bought a valuable lesson for further investments (at least).

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That is true. It is also why the wealth distribution just keeps on growing. We are seeing those wealthy get involved in things that average people are excluded because they are not accredited investors.

It is a convenient way to keep the system exclusionary.

Yet people can go to casinos or bet on state lotteries, yet they are excluded from many types of securities.

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I think they are already invest privately, he just doing his job, protecting the role of the US dollar in the world. Here is he just representing.

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Investor protection says Gary Gensler. It will be cemetery security, I mean. With weak economies and protectionism of the most powerful. They only fight to stay in their privileged position and crypto is seen as a problem rather than an opportunity for the world ruling class.

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It certainly does not scream inclusion.

Of course, he was the youngest to achieve partner in Goldman Sachs so where know what this guy is all about.

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I can't hear this, investor protection bullshit anymore. I rather like a Warrant Buffet approach to this: invest only in things you understand or have knowledge of. Get people educated on cryptocurrency in general, but this will never be a class in public school.
I wonder if some private schools are doing it, but word of mouth at private school is already doing the trick, I guess.

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In a recent interview with the Washington Post, Gensler claimed that he doubts the longevity of cryptocurrency.

That's laughable 😂😂 .."he doubts the longevity"

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Bill Gates back in the day went around the world and said 512 MB is enough for private use. 😂
I have text files which are bigger than that. LOL

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I have been seeing the headlines about some of his comments and I have been avoiding reading them because I know it will just set me off. Great breakdown of his level of stupidity here. They are going to be so ticked off when they realize they put themselves in such a bad position...

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It does take some practice in Stoicism to be able to handle the stupidity and corruption of these parasites.

Sad that we have to deal with this but here we are.

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Well, politicians will never understand this technology because it does not benefit them at all since they cannot control it.

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True but this one isnt a politicians. He was not elected to office, he was appointed.

But same ilk, politicians and bureaucrats. Only in it to protect themselves and their friends.

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Is it cluelessness or corruption? I guess that's the beauty of it, hard to tell, eh?

I wrote a blog about Gary Ginsler, Silvio Micali, Algorand and their connections here. (post old not fishing for votes) I thought I would drop that post here for some interesting additional reading about Ginsler and his connections to banking and MIT.

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That's my question. Clueless or corrupt? Perhaps the supply chain tracking should be applied to politics, politicians, and their cash flow relationships?

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Perhaps their corruption keeps them clueless.

Maybe it prevents them from looking at what is really going on.

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Yes indeed, very astute! I believe your observation is likely. It appears to me, that 'They', meaning regulators, are not 'technical' people. They are 'ideological' people. Ideas can easily blind one from seeing the technically accurate details, and at the same time provide seemingly unending justification for 'technically' corrupt behavior.

Technically, there is no going back to what was. The evolution is underway. The cat is out of the bag, so to speak. Perhaps a more accurate analogy is the 'damn has cracked'. The water will now begin to seek it's lowest level at an increasing pace and the compound momentum will eventually lead to a cavalcade of sorts. Try as they might, ideals alone cannot contain a technical reality. Tidal waves do their thing... ;)

Blockchain developers do not answer to the Gary Gensler's of the world nor the SEC.

I'm curious, as well versed as you are, can you point to any decentralized 'on-ramp' / 'off-ramp' projects? Perhaps an article on that? An involved topic for certain. Those ramps are the one 'valve' in the regulatory framework that appear most capable of corrupting the evolution of the free flow of currency. It seems to me that the 'MiamiCoin' is the sort of evolving rendition of decentralized, yet geographically local, on / off 'ramps'.

Very interested to hear your thoughts on that!

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Great way to get more SEO for both these posts since they are both about the same topic. In fact, since your is older, having the link in the comment section will only affirm your post to the search enginges.

Never a bad idea to drop older posts in the comments on Leofinance where they are applicable. It helps the rankings of the entire site.

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Wow, awesome, thank you for the tip!

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It is very hard for people (and cooperations) that succeed in a system (and getting chair may count here) to change perspective and getting a clue on things that will come. That is Life‘s tragedy, and Mr. Hensley will be no exemption.
I never heard of the Lindy effect, but wonder if it would also stand against progress and evolution by solidify aged concepts. Central Banks are also non-perishable things - longer around than crypto … ergo with a higher Life expectancy according to Lindy - I hope not.

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That is true although the Lindy Effect does not say indefinite life expectancy. We see many things replaced by something better, especially when driven by technology.

But you bring up a valid point. Do not buy into the online bs that Central Banks are going away and governments are going to fail overnight. It might over time but not soon.

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This is an amazing post, banks and financial institutions behind them know it, they know power is slipping away, but they also know how to create "financial products" to earn money. ETF, futures, exchange savings are not Satoshi´s children, they are banks´s products.
These guys are powerful and the only way to protect ourselves is EDUCATION, we need (must) learn/teach about this awesome tech and its true potential as PEOPLE´S MONEY.

Great article, thank you very much @taskmaster4450

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We do need to understand what is going on. The other way to protect ourselves is to keep decentralizing and distributing. But making what we are creating wide and expansion, we can pull in large numbers from around the world.

That is a problem for the centralized entities that are out there.

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That is a problem for the centralized entities that are out there.

And this is a MAJOR problem, there are so many centralized entities around us, and most of us don´t even know what crentralization means. Education is the only way out!

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Well i have to disagree on the part of he knows nothing about crypto. I would say he's the most intelligent sec chairman in relation to crypto so far. I think the mistake made is that these officials move in certain ways because they lack understanding. No, they move this way because they do understand it and are trying to stop it lol.

So let me shed some light and clarity here. I'm a licensed stockbroker worked for several wallstreet firms, junior economist. So i'm suppose to know what i'm talking about. i say suppose to. However let's see lol. So idk if you familar with Regulation D of the SEC.

It's many practical reasons i don't agree with Reg D. However whether you understand it or not isn't that important but just that it can appear like bureaucrats don't understand things when they don't. In Gensler's situation i would say he has a very good handle on all cryptocurrency.

So i'm going to keep it short because i don't wanna write a book many don't understand or care to understand because i already know why many of you are here. However i will say this i agree with Gary on Ethereum should have been a security. You can't get a little bit pregnant. Like you can't go raise money like Vitalik did over $18 million. Then pick and choose who's a security and who's not after the fact and excuse the event after the fact. It's like an illegal alien crossing the border and then going well i been working here for 20 years and i did the process wrong but i should be able to stay without any ramifications or consequences. No, that's not ethically how it should work. Yes you all are right the government interest is not always your interest. Nor do they same to care at points so we doubt they that eager about you wearing a seatbelt. The larger outcome is they don't wanna have to clean you up off the street if you get this analogy. Also that they want to preserve the system as is and not allow people to be free but service classes and functioning more like herded sheep are the main part of their playbook, evenso

On a deeper level i'm sometimes asked well who's side are you? It's simple i'm on the right side lol. I don't wanna get overly going on this. I'll just say it this way i'm all for economic prosperity, freedom and rights. I actually do believe to a certain extent everyone should be able to go out and participate in unregistered securities just like we're able to participate in state lotteries. if i wanna go give all my money and cash to state lotteries and can't pay bills to survive the state would not shut down the lottery or deny me access. I personally feel unregistered securities that follow a specific legal framework of reporting should be able to sell to whomever they want. We as citizens should be able to buy. It's just unrealistic though to believe we'll have neverending court cases of people in lawsuits.

We know this because even in crypto as soon as something happens people don't like. They ready to do what? Call authorities. So people want perfect conditions. They want freedom but they don't wanna be scammed lol. .They want to be able to invest in whatever investment they so choose but they don't wanna lose money lol. So Gary Gensler understands and i personally would like him to go after Ethereum simply because now he's set the precedence or the SEC has. if you're not going to go after ethereum don't go after anybody. I don't care that people feel ethereum is legit now..or that they like Vitalik.. if you go after one go after them all. If they broke the law they didn't somehow later unbreak the law. if you don't care about laws go to countries with lax laws. They out there. However i have a big pet peeve about consistency and fairness and things benefitting and working for most people not some people. NOt special people or special projects but the same projects and the same laws. If you going to have any of it.

As far as Gary take on failing cryptocurrencies and you mentioned Miami coin. i'm a native of Miami. I know the culture and the government well. When Gary says many won't survive i think he's talking about like the ico's and crypto company startups which i don't believe many will survive as well. I think a currency an actual true currency can survive. However in reality i think we have very few currencies in crypto and more of the business startups. For example what goal would a currency have? It has no goal its a medium of exchange. That's it's purpose lol. It's purpose is not to moon or make you money. So having a currency a local currency a community currency is perfectly legal. However that's not what many of you do here? Bitcoin myk and bbd coin is trying to be an actual currency that creates economic prosperity for people. Many of you guys projects are in fact just ways i believe to skirt around regulations.

Which can't happen because if it's allowed to happen yes you will have people laundering money and financing terrorist networks thats not a theory, lol. I agree the government can be the terrorist but thats neither here nor there in that this is why people topple governments. Anyway i've spoken too long lol.

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That is true. He does want to stop it. Of course, his statements also counter what is taking place at the base level.

Will he get the laws and power he wants from Congress? Most likely. Will it push a lot of stuff offshore? Probably.

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Yes he's going to win because the people aren't benefiting now. I guess another analogy may be appropriate. The government won't say we think it's a good idea to send your sons and daughters off to war to secure resources and energies and the prices go up not down in the stockmarkets of these energies and the rich and plutocratic gain more wealth and power from the price rising.

The citizen at home gains nothing but risking their lives and death and being maimed and arms and legs blown off because when the gas prices rise up now they can't afford to buy gas and food. It would almost be logical to some degree if they stole resources and it benefited the citizens. It benefits rich people on several other continents.

Let's go back to the SEC. The SEC is an arm of the government that won't say. Well we don't want all the people rising up buying the next big share of ingenuity and brilliance and prosperity and everyone becomes now middle class or wealthier. So we want to limit people from getting into the industry and opportunity. They won't say that.

They will say well we should limit you and keep you out by creating laws where you can't participate in various opportunities because we're so worried about you being in a scam that we gotta do this to protect you.

Now which one sounds better? Of course the lie sounds better than the truth. Now the reason the people don't rise up and they let the SEC go and use these laws and there is the possibility the companies or projects or whatever can run offshore based on the laws. The people don't care either way. Why should they care?

I'll tell you why they don't care. Similar to the example of patriots fighting wars based on lies. The people really know that the wars don't benefit them. They don't share in the wealth of the securing of these resources in these other places they don't even benefit from them because they own none of it. Some foreigner owns it in the global markets. All they get is higher gas and food prices again. So they don't care if we go over there fighting or not.

Now back to projects and companies that wanna now run with their technology offshore. That doesn't matter to people in the space for the most part because. The same people who can't participate in the ipo's due to regulation by the SEC in the standard economy can't participate in the ico's in the crypto economy.

Why is that? it is because the people who can't participate in the ipo economy are the same people who can't participate in the crypto economy for the most part. If you don't believe me just look at the distribution rate. They say it's going to get better there will be this great wealth transfer. Maybe but so far that's proven not to be what's happening. All we getting for the most part is the same data and numbers but worse in the crypto space. So for people to really revolt against the SEC and their backwardness. They going to need a reason to revolt. Right now it's no reason for them to revolt.

The data in the crypto space is worse than in the standard economy space. It's the same players. It's the same players because it's primarily the same systems. That's why they mirror one another so close.

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I think he is well aware of what crypto, blockchain represent.
The dilemma here has to do for the people he is working for.
He used to work for Goldman-Sachs and then for the SEC to protect again the banks.
His approach will always be bias concerning crypto or
sort of against it in the long run.
All he is doing buy time for the banks to dictate
the way crypto will grow so they can somehow control it.

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He might be trying to do that but we are seeing something else taking place: massive development. It is a battle of wills right now.

There will be massive negotiations taking place down the road. In the US, this means lobbyists, court cases, and lots of money.

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Obviously they want to prop up the current system. The BTC ETF still has to follow the regulations of the current system and they can control things somewhat.

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I don't want to paid the devil on the wall, but one or the other thing will lead to civil on global scale. There so many people attached to the old money systems, that I can't stop think of someone will start war over it. Look what IWF did with Ecuador and their request for support on using BTC as a legit currency.

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The reason why they haven't done anything about crypto is because they don't have the powers to and are attempting to use scare tactics and talk shit about crypto in order to get the house to give the SEC more powers to create new laws. THIS IS THE LAST THING WE NEED

A government with more powers putting more restrictions on it's people is not the way it's not the American way and that's drastically been changing since 2001. It pains me to see American citizens losing more freedoms, paying more taxes and relying more and more on the government. That is not what so many people fought and died for.

Most will say it's not a big deal but it really is, as soon as this law passes what comes next and next and next. It's a downward slope and not a good one for people.

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The weird thing is... he used to teach the blockchain course at MIT. He should be extremely knowledgeable... and yet...

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Well teaching it does not mean he fully understands it, especially in light of his bias towards it.

He is a banker and Wall Street vet, a very successful one at that.

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Well you pretty much responded for me towards the end...

Your headlines misleading because he's not clueless at all, he's a fox.

He might not see the large scope because of his alliances, but if you watch his classes at MIT he's certainly not clueless.

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Yes he is cunning and has an approach that could be concluded as an agenda.

There is little doubt as to what he is after in my view.

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Well tech is always changing. These boring dinosaurs are so behind the curve. The minute they pass a reg someone will create something to bypass it.


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I think they actually know exactly what is going on, but their interest in having the current system protected by all means, is far bigger than we cryptocurrency enthusiasts can do. But I guess, they bet on the wrong horse.

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I thought he was pro crypto and then switched sides giving everyone false hope. I haven't paid much attention to him besides what articles are in leofinance to be honest. Looks like he is out of his depth as they cannot control Bitcoin and that will be clearly obvious as they try.

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MiamiCoin is only going to be a ginning. There is going to be many governments without enough cash and many investors of cryptocurrency with lot of value locked in them. I still don't support investing into these for any reason other than making some quick gains.

We need to support true decentralized projects that empower private individuals and companies; not governments.
!PIZZA

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