Gary Gary Gensler, chairman of the Securities and Exchange Commission (SEC), compared stable currencies to "poker chips" in casinos on Tuesday and again compared the $2,000bn cryptocurrency market to the "Wild West".

He added that private currency has proved unsustainable, suggesting that thousands of such projects will not last.

"Private money doesn't usually last that long," Gensler said. Therefore, I do not think that 5000 or 6000 private currencies are feasible in the long run. History tells us that this is not the case. Therefore, at the same time, I think it is necessary to establish an investor protection mechanism around this issue. "

Stable currencies are "like poker chips in casinos," Gensler said. "We have a lot of casinos in the Wild West, and these stable coins are poker chips. On the table in the casino. "

Gensler said in a speech in early August that digital asset markets were like the "wild west" that lacked strong protection for investors. He called on lawmakers to give SEC more powers to regulate the industry.

A stable currency is a cryptographic currency linked to legal tender such as the dollar and backed by traditional assets such as short-term government bonds.

Gensler said that under the guidance of US Treasury Secretary Yellen, SEC is preparing a report on stable currencies. Working with Congress would help stabilize currency regulation, he added.