Bitcoin and other major cryptocurrencies have been under serious regulatory scrutiny for some time now. This scrutiny seems to have intensified when the collapse of the two major cryptocurrencies this year. A collapse that sparked a heavy multi-million dollar crisis in the crypto industry.
Bitcoin, the biggest cryptocurrency in the world, has shown resilience thus far. The coin has now managed to crawl back just above the $20,000 mark. Bitcoin showed this resilience despite the JPMorgan price warning.
Furthermore, several other digital currencies seem to be resurrecting from their tombs. Ethereum, BNB, Dogecoin and Cardano have moved from their recent lows as a result of bitcoin’s move.
The Regulation Mix
Currently, the chairman of Wall Street’s top regulator has given a statement concerning crypto regulation. He said that the Security and Exchange Commission (SEC) will consider exempting crypto firms from some regulatory requirements. This is to be done in a bid to tame the crypto “extreme conditions.”
“There’s a potential path forward,” SEC chair Gary Gensler said during an interview in comments that point to how the SEC could work with the crypto industry going forward. He then added that the agency has the authority to give exemptions to certain regulatory and disclosure requirements. “I’ve said to the industry, to the lending platforms, to the trading platforms: ‘Come in, talk to us.'”
The one who recently warned that many crypto companies are “noncompliant” said that the SEC has “robust authorities from congress.” He added that many companies do not have the authority from congress to use the exemptive authorities tailored for investment protection.
SEC On Regulations Thus Far
Earlier this year, the SEC found crypto lender BlockFi to be an unregistered investment company. One reaching a settlement of $100 million. Furthermore, in May, the SEC announced that it has doubled the number of staff in the crypto and cyber units. They did this to get a handle on the spicy crypto market. The market was shooting as high as a whooping $3 trillion in value before eventually deflating over the last few months. A deflation which points to the Federal Reserve hawkish stance and the collapse of Luna as its core cause.
“The public is largely unprotected due to non-compliance in this space,” Gensler said. “The public benefits by knowing full and fair disclosure and that somebody is not lying to them. You know, basic protections.”
The bitcoin, ethereum and crypto price crash has forced multiple lending platforms to file for bankruptcy. In addition to that, accounts of users have now been locked and users kept out of their accounts in recent weeks. All of these transpired while they were still trying to struggle and hold back a tide of withdrawals.
“If it’s too good to be true, then maybe it is,” Gensler said, referring to sky-high yields of up to 20% that crypto lenders offer to depositors and market as safe. “There may be a lot of risk embedded in that.”
The Crypto Markets Today
Crypto markets recovered over the weekend as coins like Ethereum and Polygon (Matic) witnessed a sharp rise in prices. Matic’s price has jumped nearly 44% in the last 7 days. Meanwhile, the global cryptocurrency market cap jumped 1.34% over the last day to nearly $979 billion, according to CoinMarketCap data.
Bitcoin (BTC) dominance declined 0.49% over the day to 41.45% while its price once again changed hands above $21,000. At the time of writing, BTC was trading at $21,312. In the last 7 days, BTC price has increased by 3.37%.