cryptocurrency
Bulletins

Gary Gensler just compared stablecoins to 'poker chips'

That doesn't bode well for the hot crypto sector as the SEC under Gensler scrutinizes the industry.

​Gary Gensler at a 2013 hearing.
Gary Gensler at a 2013 hearing.
Photo: Andrew Harrer/Bloomberg via Getty Images

SEC Chairman Gary Gensler compared stablecoins to casino gambling as his agency ramps up scrutiny of cryptocurrencies.

"These stablecoins are acting almost like poker chips at the casino right now," Gensler said at a Washington Post event Tuesday.

At a Senate hearing last week, Gensler was critical of cryptocurrencies, calling them a "speculative" asset class.

Stablecoins have been touted as a way to address the volatility in crypto markets, but they've also been cited as a potential threat to broader financial market stability, as they are backed by reserves that can include assets like Treasury bonds and commercial paper.

Tomio Geron

Tomio Geron ( @tomiogeron) is a San Francisco-based reporter covering fintech. He was previously a reporter and editor at The Wall Street Journal, covering venture capital and startups. He was also as a staff writer at Forbes covering social media and venture capital, and edited the Midas List of top tech investors. He can be reached at tgeron@protocol.com or tgeron@protonmail.com.

gary genslerstablecoinscryptocurrency
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Bulletins