According to CryptoPotato, the Securities and Exchange Commission (SEC) chairman has reiterated his criticisms of Bitcoin (BTC) even after approving several exchange-traded funds (ETFs) for the cryptocurrency earlier this week. In an interview with CNBC, the chairman argued that Bitcoin has limited use cases other than illicit activities and has ironically become more centralized over time.
The chairman stated that investors should be aware that the underlying asset is highly speculative and volatile, emphasizing that the SEC does not 'approve' or 'endorse' Bitcoin. He listed ransomware, money laundering, sanction evasion, and terrorist financing as some of the alleged use cases for Bitcoin. He also questioned its use as a store of value and medium of exchange.
While acknowledging the innovative potential of blockchain technology as an accounting system, the chairman pointed out the irony of approving an ETF for a supposedly decentralized system. He also highlighted the centralization of Bitcoin mining, with just two mining pools controlling over 50% of the network's hash rate, according to Hashrate Index. However, these pools consist of multiple mining firms that can switch pools or mine independently at any time. In 2020, Twitter co-founder Jack Dorsey supported a non-custodial new mining pool aimed at decentralizing the mining industry.
