US Securities and Exchange Commission (SEC) chairman Gary Gensler has warned that many crypto tokens will fail and many crypto investors will be injured following the collapse of terra (LUNA) and stablecoin terrausd (UST).
SEC Chairman Gensler’s Warning After LUNA and UST . Collapse
U.S. Securities and Exchange Commission chairman Gary Gensler expressed concern on Wednesday that more crypto investors will be hurt following the implosion of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).
He told reporters after a House Appropriations Committee hearing:
I think a lot of these tokens will fail… I fear in crypto… a lot of people will get hurt, and that will undermine some of the confidence in markets and confidence in markets.
Last week, the algorithmic stablecoin UST lost its peg to the US dollar, sending the price and price of cryptocurrency LUNA into a free fall.
The collapse of the two cryptocurrencies has raised major concerns among regulators and lawmakers. US Treasury Secretary Janet Yellen mentioned the collapse of UST and last week called for more regulation of stablecoins.
Gensler said on Wednesday that SEC-registered asset managers have no significant exposure to crypto assets. However, he noted that his agency has less oversight of private funds, especially family offices. The SEC chief believes that most cryptocurrencies out there are securities. He has urged cryptocurrency trading platforms to approach the SEC and register.
“There is a path forward that we are discussing with these exchanges to do both: to get the platforms registered and also have a path for the tokens,” he said, pointing out that the agency has the authority to make exceptions where necessary. to create . He added:
They should register or, you know, we’re going to be the cop on the job, and we’re going to take enforcement.
However, Gensler has been heavily criticized by some for taking an enforcement-oriented approach to regulating the crypto sector. He announced earlier this month that the SEC plans to nearly double the crypto unit of its Enforcement Division.
The SEC chairman indicated on Wednesday that his agency does not have sufficient resources to adequately monitor the financial markets. He emphasized:
We are really out-person.
Commenting on the SEC’s lack of resources, U.S. Representative Tom Emmer tweeted to Gensler:
You’re putting all of the SEC’s taxpayer-funded resources into crypto crackdowns. Now you don’t have the money to do your actual job, so you’re coming to Congress for more? You are kidding me.
What do you think of Gary Gensler’s comments and his approach to crypto regulation? Let us know in the comments below.
Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.
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