Research Summary
This report compares the gold and precious metals trading community from 2009 to 2012 to today’s cryptocurrency community, focusing on the controversial role played by US regulator Gary Gensler in both periods. Gensler, currently the chairman of the Securities and Exchange Commission (SEC), has been accused of inconsistent regulatory practices and favoring large financial institutions over small investors. The report suggests that Gensler’s past experience may make him more resilient to current pressures.
Key Takeaways
Gensler’s Role in Both Communities
- Gensler’s Regulatory History: Gensler has been a key figure in both the gold and precious metals trading community and the cryptocurrency community. He has faced accusations of inconsistent regulatory practices and favoring large financial institutions in both roles.
- Similar Accusations: In both communities, Gensler has been accused of failing to protect small investors and succumbing to the demands of large financial institutions.
- Resilience to Pressure: Given his past experiences, Gensler may be more resilient to the pressures he is currently facing than some might think.
Comparison of the Two Communities
- Gold & Precious Metals Traders vs. Crypto Traders: Both communities consist of thousands of day traders and non-traders who communicate through various platforms and attend numerous conferences and meetups.
- Accusations of Manipulation: Both communities have accused US authorities and key banks of manipulating prices to defend the integrity of the US Dollar.
- Community Villains: Gensler has been portrayed as a villain in both communities, along with other key figures in the financial and political world.
Gensler’s Impact on the Communities
- Regulatory Actions: Gensler’s regulatory actions have been a key driver of cryptocurrency prices in recent times, causing both downward and upward price movements.
- Perceived Hypocrisy: Gensler has been accused of hypocrisy due to his positive stance on cryptocurrency in 2018, followed by a more negative stance in recent times.
- Future Ambitions: Some critics allege that Gensler’s ambition is to become the treasury secretary, which they believe influences his regulatory actions.
Actionable Insights
- Understanding Gensler’s Role: It’s important to understand Gensler’s role and influence in both the gold and precious metals trading community and the cryptocurrency community to anticipate potential regulatory actions.
- Monitoring Regulatory Actions: Keeping an eye on regulatory actions can provide insights into potential price movements in the cryptocurrency market.
- Investigating the Potential of Cryptocurrencies: Despite the regulatory pressures, the potential of cryptocurrencies as a new form of currency and investment should not be overlooked.
