SEC Boss Acknowledges That Bitcoin Is A Competitor For U.S. Banking System

Bitcoin is a proven long-term investment that means countries can’t ignore its impact on their economy. This has required nations to respond with regulations. While certain countries have enacted favorable laws regarding bitcoin, other nations have attempted to ban the digital asset. United States tends to favor the former.

SEC made numerous attempts to regulate crypto, and Gary Gensler (SEC boss) commented on how the regulator is trying to do so. The role of BTC in the economy is a growing concern.

Bitcoin and the Economy

Gary Gensler (SEC Chairman) has voiced concerns over bitcoin and the U.S. economic system. The SEC chief stated that BTC was now an adversary to the U.S. bank system. Gensler made this statement on Wednesday, when Gensler spoke to Jay Clayton, former chairman of the SEC, at the DACOM Summit 2021, about the roles of cryptocurrencies and Bitcoin in the economy.

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Gensler said during the summit that Bitcoin was the result of global sanctions and regimes. He referred to BTC as “an off-the-grid type of approach”.

“In 2008, Satoshi Nakamoto wrote this paper in part as a reaction, an off-the-grid type of approach. It’s not surprising that there’s some competition that you and I don’t support but that’s trying to undermine that worldwide consensus.”

BTC is completely distributed. Satoshi Nakamoto, the creator of Bitcoin, had structured the asset in a way that it couldn’t be replicated or controlled by a single entity.

Bitcoin price chart from

 Source : BTCUSD On| Source: BTCUSD on

BTC: The Mainstreaming of Bitcoin

Bitcoin’s deflationary character has been a key feature for those who invested in the asset. The asset was a great hedge against inflation due to its high returns. The asset has become a very popular option for investors in the financial sector.

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The decentralization is another aspect of cryptocurrency. The holder of the coin is in full control of all their assets and can be hampered by government agencies or entities. It basically allows people to become their banks.

The same reason that Bitcoin is such a popular investment are also the reasons why governments view it as a danger. However, not all governments view crypto as a danger. El Salvador, for example, has made Bitcoin its legal tender.

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