The Chairman of the US Securities and Exchange Commission (SEC) Gary Gensler has warned that many crypto tokens will fail and many crypto investors will be hurt after the collapse of Terrausd (UST) and the Terrausd.
SEC chief Gensler’s warning after the collapse of LUNA and UST
US Securities and Exchange Commission Chairman Gary Gensler expressed concerns on Wednesday that more crypto investors will be hurt after the collapse of cryptocurrency Terra (LUNA) and Terrausd (UST) stablecoin.
He told reporters after the House Appropriations Committee session:
I think a lot of these coins are going to fail… I’m afraid that in cryptocurrencies… there’s going to be a lot of mischief, and it’s going to seriously erode some of the confidence in the markets and the confidence in the markets.
Last week, the algorithm stable UST lost its correlation with the US dollar, which led to a fall in its price and that of the cryptocurrency LUNA.
The collapse of the two cryptocurrencies has caused major concerns among regulators and lawmakers. US Treasury Secretary Janet Yellen cited the collapse of terrestrial treasuries while calling for increased regulations for stablecoins last week.
Gensler said Wednesday that SEC-registered asset managers do not have significant exposure to crypto assets. However, he noted that his agency has less visibility into private funds, particularly family offices. The head of the SEC believes that most cryptocurrencies are in securities. He has been urging cryptocurrency exchanges to approach the Securities and Exchange Commission (SEC) and register.
“There is a path forward in which we are talking with these exchanges about doing both: registering platforms and finding a path for tokens as well,” he said, noting that the agency has the authority to create waivers when necessary. he added:
They should move toward registration or, you know, we’ll be the cop, and we’ll do enforcement.
However, Gensler has been heavily criticized by some for taking an enforcement-focused approach to regulating the crypto sector. It was announced earlier this month that the SEC plans to double the size of its enforcement division’s cryptographic unit.
The head of the Securities and Exchange Commission indicated on Wednesday that his agency does not have sufficient resources to adequately monitor the financial markets. confirmed:
We are really superior.
Commenting on the SEC’s lack of resources, US Representative Tom Emer tweeted to Gensler:
I have put all SEC taxpayer-funded resources into crypto campaigns. Now you don’t have the funds to do your actual work, so you’re coming to Congress for more? You must be kidding me.
What do you think of Gary Gensler’s comments and his regulatory approach to cryptocurrency? Let us know in the comments section below.
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