Gensler’s Stand on Bitcoin Not Enough According to Deaton
Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), has said that Bitcoin should be treated like a commodity due to its volatility. However, according to Seth Deaton, a senior analyst at Fundstrat, Gensler’s stand on Bitcoin is not enough.
Why Gensler’s BTC Stance is Insufficient
Deaton believes Gensler’s stance does not go far enough in protecting investors from potential losses due to the high levels of volatility present in the Bitcoin market. He also said that Bitcoin may be a form of commodity, but it needs to be treated as a currency.
Here are some reasons why Deaton believes Gensler’s stance on BTC is insufficient:
- High Volatility: As previously mentioned, the volatility of Bitcoin creates a risky environment for investors. Therefore, proper regulations need to be applied in order to protect investors.
- Lack of Oversight: Bitcoin is a decentralized form of currency, meaning there is no central authority or government that can regulate it. Therefore, there is a lack of oversight when it comes to protecting investors against potential losses.
- Lack of Clarity in Regulations: There is a lack of clarity in the regulations governing Bitcoin. As such, investors may find themselves in an unclear regulatory environment, which may lead to potential losses.
Conclusion
Gensler’s stance on Bitcoin is not enough. According to Seth Deaton, a senior analyst at Fundstrat, Bitcoin needs to be treated as a currency, not just a commodity, in order to protect investors from potential losses due to its high levels of volatility. Additionally, proper regulations need to be put in place in order to provide clarity and oversight to protect investors.