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Bitcoin price, however, managed to recover more than $20,000 per bitcoin even after a serious price warning from JPMorgan, which helped Ethereum price, BNB
Now, the chairman of Wall Street’s chief regulator has said that the Securities and Exchange Commission (SEC) is considering exempting crypto companies from certain regulatory requirements in the event of “Wild West” crypto approval.
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“There is a way forward,” SEC chairman Gary Gensler said in an interview with… Yahoo finance in comments outlining how the SEC could work with the crypto industry in the future and adding that the agency has the power to grant waivers from certain regulatory and disclosure requirements. “I said to the industry, to the lending platforms, to the trading platforms, ‘Come in, talk to us.'”
Gensler, who previously called the bitcoin and crypto market the “wild west” and this week heeded a warning that many crypto companies are “non-compliant,” said the SEC has “strong authorities in Congress to use our exemption authorities that we can tailor protect investors.”
Earlier this year, the SEC discovered that cryptocurrency lender BlockFi was an unregistered investment company and reached a $100 million settlement.
In May, the SEC announced that it had doubled the number of employees in its Crypto Assets and Cyber unit as it tried to curb the hot crypto market that exploded last year and was worth a ravishing $3 billion before deflating. . in recent months due to the increasingly aggressive stance of the Federal Reserve and the collapse of the stablecoin terraUSD and the supporting cryptocurrency luna.
“The public is largely unprotected because of non-compliance in this space,” Gensler said. “The public benefits if they know full and fair disclosure and that someone is not lying to them. You know, basic protection.
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Falling bitcoin, ethereum and crypto prices in recent weeks have forced several lending platforms to file for bankruptcy and ban users from their accounts as they struggle to curb a surge in withdrawals.
“If it’s too good to be true, maybe it is,” Gensler said, referring to the staggering returns of up to 20% that crypto loans offer depositors and the market as safe. “There can be a lot of risks built into that.”