Gary Gensler, the U.S. Securities and Exchange Commission (SEC) Chair, recently stated in an interview that the United States doesn’t require additional digital currencies. As the SEC files legal action against cryptocurrency exchanges Binance and Coinbase for running unregistered securities exchanges, Gensler emphasized that the U.S. dollar already serves as a digital currency.

Gensler stressed that economies and societies have functioned well with a single medium of value exchange throughout history and that existing fiat currencies such as the dollar, euro, and yen already possess digital representations and can facilitate digital investments.

Despite his reservations about other digital currencies, Gensler acknowledged the potential value of crypto tokens and suggested that “compliance and trust” would play a crucial role in shaping the industry’s future. He said that if these tokens provide actual value, complying with regulatory frameworks can help establish investor trust and potentially drive changes in the business models of crypto exchanges.

The SEC’s recent lawsuits against Binance and Coinbase accuse both exchanges of violating securities regulations in the United States by operating as a brokerage and clearing house without proper registration. Gensler defended the SEC’s actions, calling them “pro-innovation” and emphasizing the importance of trust and compliance for the efficient functioning of capital markets.