Gary Gensler Remains Silent On Trump's Bitcoin Reserve! What Is He Hiding?

The SEC Chairman, Gary Gensler, recently declined to comment on Donald Trump’s idea of establishing a national strategic reserve of Bitcoin. This silence comes in a tense election period, where every word from financial regulators can have significant repercussions on the markets.

Gensler avoids the question: what is he hiding about Trump’s Bitcoin reserve?

During an interview, Gary Gensler emphasized that while Bitcoin is considered a commodity, regulatory clarity exists for the crypto space. He insisted that current laws give the SEC the power to oversee the digital asset sector. “Not liking the rules is not the same as saying there are no rules,” he said, in response to criticism about regulation by litigation.

However, when asked about Trump’s proposal to maintain the government’s current holdings as the core of the national strategic reserve of Bitcoin, Gensler preferred to remain discreet. “I have an opinion, but given my role and the fact that we are in an election period, I will stick to my priorities, namely the stock markets,” he explained. This proposed Bitcoin reserve by Trump could potentially influence market dynamics, but Gensler chose not to venture into this area.

The majority of digital tokens are securities!

Outside of Bitcoin, Gensler maintained that the majority of other digital tokens meet the legal definition of securities and therefore fall under the SEC’s jurisdiction. This stance remains unchanged despite industry resistance and lawsuits against the SEC. Gensler also expressed concerns about trust in the crypto sector, citing the numerous frauds and bankruptcies that have marked the industry in recent years.

Finally, Gensler’s silence on Trump’s proposal leaves doubts about the future of this initiative. Investors and market watchers will have to wait to see how this situation evolves, especially as the U.S. presidential elections approach.