Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), gave an interview at night. Some of the phrases in Gensler’s interview dropped cryptocurrencies. Here are the details…
Gensler: SEC running out of patience
The world of cryptocurrencies went through everything in 2022. From the May crash of the Terra ecosystem to the recent crash of the FTX exchange, the industry has seen it all. One of the most shocking events, as we have also reported as Kriptokoin.com, was the disastrous fall of the FTX exchange. A series of disasters in the cryptocurrency space has alerted global regulators. To avoid another FTX situation, the US Securities and Exchange Commission has also begun tightening measures.
In one of the most recent interviews, SEC chairman Gary Gensler stated that the SEC’s crackdown on crypto has only just begun. Gensler also noted that with the increase in the number of cryptocurrency exchanges violating regulations, the SEC’s patience is waning. The SEC also criticized Sam Bankman-Fried and his two partners, Caroline Ellison and Gary Wang, for defrauding investors. He also criticized them for portraying a false and solid FTX image to the outside world.
About the reserve evidence
Gensler also mentioned proof of reserve reports in the interview. He stated that proof of reserve is not a “complete accounting” of a company’s assets and liabilities. According to Gensler, this method does not provide enough information to keep investors safe. He also pointed out that the audit method does not allocate client funds under securities law. He stated that the fact that client funds were not always kept separate has caught their attention since the time FTX collapsed.
The SEC Chairman said he supports legislation regulating cryptocurrency industries such as stablecoins. He pointed out that the US Securities law is sound. He explained that it covers most of the activities in the crypto ecosystem and is not limited to tokens. Meanwhile, as we reported the other day, Alameda CEO Caroline Ellison and FTX co-founder Gary Wang have agreed with the SEC and the CFTC. He admitted to the charges against him.
Gensler’s statements dumped cryptocurrencies
After Gensler’s statements, the price of cryptocurrencies fell. So many cryptocurrencies have “dumped”. Bitcoin price fell from $ 16,885 to $ 16,599 in the 24-hour period. It is changing hands at $16,852, up 0.2 percent at the time of writing. Ethereum (ETH) is changing hands at $1,222, down 1%.
On December 23, the global crypto market cap was practically flat at $810.53 billion from the previous day. However, as can be seen, major cryptocurrencies have been mixed. In the last 24 hours, the overall crypto market volume has increased by 12.46 percent to $28.94 billion.
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