SEC Chairman harshly criticizes Binance in interview! Why did he still say "we don't need more digital currencies"?

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, recently criticized Binance in an interview with CNBC, stating, "We don't need more digital currencies." Why did he make such a statement?

Gary Gensler Criticizes Binance: Platform with Conflicts and Fraud

In the interview regarding the lawsuit against Binance, Gary Gensler referred to the Binance platform at the beginning of the interview as having a mix of functions, stating that traditional financial institutions like the New York Stock Exchange would not operate hedge funds, market-making, wash trading, have sister companies, and lack control over the platform.

"This is a platform with conflicts and fraud, attempting to violate U.S. laws under CZ's control," Gary Gensler said.

In the SEC's accusations against Binance, the SEC has requested emergency measures such as asset freezes and recovery from Binance. The host asked if this is essentially a death sentence for Binance?

In response, Gary Gensler mentioned that currently, it is not even known who is custodian of Binance assets, whether they are held within the U.S. or overseas, and if any crypto assets have been transferred to other related institutions. In this situation, the SEC will do everything it can in court based on facts to protect investors.

Gary Gensler: No Need for More Digital Currencies

During the interview, the host also mentioned to Gary Gensler that he doesn't know how people should evaluate the value of cryptocurrencies, as the value seems to be purely based on the Greater Fool theory prediction?

Regarding this issue, Gary Gensler expressed that the use cases for cryptocurrencies are controversial, but he also clearly stated:

"We don't need more digital currencies; we already have digital currencies. They are called the U.S. dollar, the Euro, and the Japanese Yen... they are all digital now."

The reason Gary Gensler made this statement is because he believes there are already digital ways to invest. With the advancement of technology, the investment world is already digital.

As for how to evaluate the underlying value of cryptocurrencies, Gary Gensler did not provide any relevant comments because without complete, fair, and true information disclosure under securities laws, everything is just talk.

Note: The Greater Fool theory is an investment concept that refers to investors purchasing assets without considering their true value, expecting to resell them at a higher price to a greater fool or investor. In other words, investors rely on the appearance of someone more foolish and willing to buy the asset at a higher price in the market.