Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), has expressed doubts about whether cryptocurrencies, such as Bitcoin, can become widely used as a payment method. He believes they are more likely to be seen as a store of value rather than a full-fledged payment tool.

Referring to 19th-century Gresham’s Law, Gensler emphasized that “bad money drives out good,” and that countries ultimately tend to adopt a single primary currency.

The Role of Cryptocurrencies in the Economy

Gensler also explained the importance of having a single currency for the economy:

“You want to have one currency because it is a store of value, a medium of exchange, a unit of account. All of these are crucial to the network economy. A digital asset must demonstrate its value through disclosure, usage, as happens with stocks on the stock exchange.”

Thus, the future of cryptocurrencies as a payment method remains uncertain, as they have not yet proven their significance in this role.

SEC’s Law Enforcement Actions

Gensler also commented on the SEC’s active actions against cryptocurrency companies, linking them to the prevalence of fraudulent schemes in the industry. He noted:

“The leading figures in this field in 2024 are either in prison or awaiting extradition.”

Thus, the regulator continues to actively oversee the cryptocurrency market, adhering to principles set out in the Howey Test, which was affirmed by the U.S. Supreme Court in 1940.

Political Pressure and Potential Resignation

Gensler refused to discuss the potential impact of the 2024 presidential elections on his future at the SEC, despite Donald Trump’s promise to fire him if he wins. In September, the House of Representatives began an investigation into the SEC over suspicions of politically motivated hiring practices.

Additionally, the issue of Gensler’s resignation has been raised multiple times in Congress, particularly after the SEC lost its case against Grayscale in 2023. In October, it was announced that Gurbir Grewal, the SEC’s Director of Enforcement, who was seen as the “primary initiator of Gensler’s attacks on cryptocurrencies,” would be stepping down.