SEC raises controversy again over Bitcoin
The head of the US Securities and Exchange Commission (SEC), lately expressed his opinion on bitcoin and altcoins.
In a recent interview with CNBC, Gary said:
Bitcoin and thousands of other cryptocurrencies are speculative assets.
In addition, the Chairman of the Securities and Exchange Commission (SEC) highlighted the importance of having a clear regulatory framework for cryptocurrencies, mentioning in this regard:
The buying and selling systems used with the aid of cryptocurrency traders are no longer currently issue to a regulatory regime that protects them like they alternate on the New York Stock Exchange.
The cryptocurrency market has witnessed constant growth for the reason that the opening of 2021.
Despite the declines in May and June, the whole market capitalization of cryptocurrencies has increased by way of more than a hundred percent in the previous six months.
Bitcoin, the world's most precious digital currency, is currently trading near $38,000 with a market capitalization of around $715 billion.
Given the latest surge in reputation and adoption of cryptocurrencies, discussions regarding a clear regulatory framework for cryptocurrencies have extended rapidly.
In December 2020, the US Treasury proposed stringent Know-The-Customer (KYC) necessities for cryptocurrency to combat the viable involvement of Bitcoin and different digital currencies in unlawful activities.
Crypto Market Regulations:
During a current discussion with CNBC, Gensler noted that the principal purpose of the Securities and Exchange Commission is to protect investors, and added:
I am pro-innovation, but we additionally want guidelines of the road.
Satoshi Nakamoto's invention of bitcoin, if it is to recognize its potential, have to in shape inside public coverage frameworks.
Due to the lack of a clear regulatory framework for Bitcoin and different cryptocurrencies, institutional activity has begun to subside in the previous few months.
According to the ultra-modern weekly crypto market money outflow file published by using CoinShares, BTC funding merchandise noticed $20 million really worth of outflows remaining week.
In a latest interview with CNBC, Nikolaus Panegirzoglu, global market strategist at JPMorgan, highlighted the sharp decline in institutional interest in bitcoin and other cryptocurrencies.
Cryptos are here to stay