SEC Chair Gary Gensler scrutinizes Bitcoin and questions its use cases despite the agency approving Bitcoin ETFs earlier this year. 

In an interview today with CNBC, Gensler clarifies that the SEC’s approval of Bitcoin ETFs is merit-neutral and is not an approval of Bitcoin as an asset class. Gensler emphasized that crypto is filled with fraud and manipulation, and Bitcoin’s current use cases are predominately focused on illicit activities.

Gensler further said that Bitcoin is the leading market share in ransomware, and its public attraction is mainly due to speculative investment. The SEC Chair compared Bitcoin with leading national currencies like Doller, Euro, and Yen, saying crypto has a real economic difference. 

Gensler also expressed his opinion about the ongoing frauds and losses suffered by crypto companies, saying that bankruptcies have become frequent in this industry. Extending his criticism, the SEC Chair also refuted that Bitcoin is truly decentralized, saying it’s concentrated among a handful of entities. 

“This is a rife with fraud and manipulation. And look at all the bankruptcies. It’s not just one entity. It’s entity after entity after entity, and then investors are just lining up in the bankruptcy court.”

– Gary Gensler

When asked about the prospects of Ethereum ETFs, Gensler agreed that the SEC currently has several applications. Still, he doesn’t want to prejudge the decision, and it’s ultimately up to a commission of five members.