Gensler said he is considering a rigorous regulatory regime for the crypto market. Gensler is the chairman of the U.S Securities and Exchange Commission (SEC).
As investors responded to news that America’s top financial watchdog wants tougher regulation of the space, Bitcoin’s recent price momentum fizzled on Tuesday morning.
In a statement released on Tuesday, he stated that he wanted tighter regulation of bitcoin to protect consumers.
Gensler, who taught a cryptocurrency course at MIT, said the technology was neutral or even fascinating to him, but he was not neutral on investor protection. “We have a role as a nation to protect those investors against fraud,” he explained.
When it comes to crypto regulation, one of the most important considerations is which jurisdiction the industry belongs under.
Regulators believe bitcoin is more like a commodity than a security, thereby keeping the world’s most popular cryptocurrency outside the SEC’s purview.
However, DeFi financing, according to Gensler, could be subject to SEC regulation because it frequently offers a fixed interest rate. He also suggested that platforms that pool digital assets could be regulated by the SEC in the same way as mutual funds are.
SENATOR WARREN’S STATEMENT ON SEC’S DECISION
Member of the Senate Banking Committee and a longstanding critic of the nation’s largest banks, Warren encouraged the Treasury secretary to use her powers on the Financial Stability Oversight Council to create a safer crypto market.
Elizabeth Warren also specified about the crypto regulations supporting Gary Gensler.
People started talking about the new regulations after SEC announced the news.
A user criticised the new regulations embedding on cryptos and stated that “He doesn’t want any regulations,” addressing Gary Gensler.
Recently, Bitcoin’s price has fluctuated between $38,200 and $30,000. It fell below $30,000 in late July.
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