Gary Gensler, Leader of the US Securities and Exchange Committee (SEC), gave an interview at night. Some remarks in Gensler’s interview made cryptocurrencies fall. Here are the details…
Gensler: SEC running out of patience
The world of cryptocurrencies went through everything in 2022. From the fall of the Terra ecosystem in May to the recent fall of the FTX exchange, the sector has seen it all. One of the most shocking events was the catastrophic drop of the FTX stock market. A series of disasters in the cryptocurrency space has alerted global regulators. To avoid another FTX situation, the US Securities and Exchange Committee has also begun tightening measures.
In one of the most recent interviews, SEC leader Gary Gensler stated that the SEC’s crackdown on crypto has just begun. Gensler also noted that the SEC’s patience is waning with the increase in the number of cryptocurrency exchanges violating regulations. 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 proofs of reserve
Gensler also talked about 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 in faith. He also pointed out that the control technique does not allocate client funds under the securities law. He stated that the fact that client funds are not always kept elsewhere has drawn their attention since the time FTX collapsed.
The SEC Leader said he supports legislation regulating crypto segments such as stablecoins. He pointed out that the US Securities law is sound. He explained that the activities in the crypto ecosystem cover many and are not limited to tokens. Meanwhile, as we reported yesterday, 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
Following Gensler’s statements, the price of cryptocurrencies fell. So many cryptocurrencies “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 price remained practically stable at $810.53 billion compared to the previous day. However, as can be seen, major cryptocurrencies have seen mixed processes. In the last 24 hours, the overall crypto market volume has increased by 12.46 percent to $28.94 billion.