Since the collapse of two significant cryptocurrencies, earlier this year caused a multi-trillion dollar crypto crisis, bitcoin and other cryptocurrencies have come under increased regulatory scrutiny.
However, despite a significant price warning from JPMorgan, the price of bitcoin has managed to climb back to over $20,000 per coin, supporting price increases for other cryptocurrencies such as Ethereum, BNB, XRP, Solana, Cardano, and Dogecoin.
In an effort to control the crypto “Wild West,” the Securities and Exchange Commission (SEC) may now explore exempting crypto businesses from some regulatory obligations, according to the chairman of Wall Street’s top regulator.
Gary Gensler, the head of the SEC, stated in an interview with Yahoo Finance that there is a “possible way forward” and that the SEC has the right to exclude specific industries from regulation and transparency obligations in the future. So I’ve said, “Come in, talk to us,” to the marketplace, loan platforms, and trading platforms.
The SEC has “strong authority from Congress to utilize its exemptive authorities that we may customize investor protection,” according to Gensler, who has previously referred to the bitcoin and cryptocurrency business as a “Wild West” and reiterated this week that many crypto companies are “non-compliant.”
The SEC identified BlockFi as an unregistered investment corporation earlier this year, leading to a settlement of $100 million.
The SEC announced in May that it had doubled the staff in its Crypto Assets and Cyber Unit as it tries to control the volatile cryptocurrency market, which last year exploded to a staggering $3 trillion value before deflating over the last few months as a result of the Federal Reserve’s more hawkish stance and the failure of the terraUSD stablecoin and its support cryptocurrency luna.
Gensler claimed that because of non-compliance in this area, “the public is essentially vulnerable.” “The general public gains from knowing that there has been complete and fair disclosure and that no one is deceiving them. You know, fundamental safeguards.”
The recent drop in the price of BTC, Ethereum, and other cryptocurrencies has led a number of lending platforms to declare bankruptcy and lock customers out of their accounts because they are unable to stem the stream of withdrawals.
Gensler added, alluding to the absurdly high rates of up to 20% that crypto lenders give to depositors and advertise as safe: “If it’s too good to be true, then maybe it is.” “There might be a lot of risks there.”
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