SEC boss admits that Bitcoin is a competitor to the U.S. banking system

Bitcoin has proven to be a long-term game, which means that countries can no longer ignore the impact of cryptocurrency on the economy. One way for countries to respond to this is through regulations. Although some countries have implemented laws that are beneficial to Bitcoin, others have embarked on the path of trying to block digital assets. The United States prefers the latter.

The U.S. Securities and Exchange Commission has repeatedly tried to regulate the crypto industry. The boss of the U.S. Securities and Exchange Commission Gary Gensler has repeatedly commented on the measures that regulators are taking to regulate assets. More and more people are now worried about the role of BTC in the economy.

Bitcoin and the economy

SEC Chairman Gary Gensler raised some concerns about Bitcoin and the U.S. economy. According to the SEC boss, BTC is now a competitor to the U.S. banking system.Gensler said in a conversation with former U.S. Securities and Exchange Commission Chairman Jay Clayton on Wednesday DACOM Summit 2021 Regarding the role of cryptocurrencies, Bitcoin and ETFs in the economy.

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Gensler stated at this summit that Bitcoin was born in response to sanctions and systems imposed on a global scale. He referred to BTC as “an off-grid type method.”

“In 2008, Satoshi Nakamoto wrote this paper partly as a response, an off-grid type method. It is not surprising that there are some competitions that you and I do not support, but this is trying to undermine the global consensus.”

This refers to the completely decentralized nature of BTC. Satoshi Nakamoto, the creator of Bitcoin, constructed assets in a way that a single entity cannot replicate or control.

BTC price trading at $57K | Source: BTCUSD on TradingView.com

Why BTC has become mainstream

For investors buying this asset, the deflationary nature of Bitcoin has always been one of the most important things. Coupled with its impressive return on investment, the asset has become a perfect hedge against inflation. Thus becoming a more popular investment channel in the financial world.

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The other is related to the decentralization of cryptocurrencies. It gives token holders complete control of their assets, free from any entity or government agency intervention. It basically helps people become their own bank.

However, what makes Bitcoin such an attractive investment for investors is the same as what makes the government see digital assets as a threat. Although not all governments see cryptocurrency as a threat.One such example is El Salvador has adopted Bitcoin as the country’s legal tender.

Featured image from CNBC, chart from TradingView.com

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