Federal Reserve Governor Christopher Waller gave a stern warning to those involved in cryptocurrency assets on Friday. He cautioned that the lack of regulation in the asset class makes it more prone to fraud and speculation, and that it should not be considered as a safe-haven investment. Waller also warned that the underlying technology, blockchain, is still in its early stages and is not yet suitable for large-scale payments and transactions.
The governor urged those interested in cryptocurrency to proceed with caution, since the asset class is untested and often volatile. He also stated that the Fed is still in the process of developing digital currency regulations, and will continue to closely monitor the market for any potential risks.
Bitcoin Price Today at $21,741.9 increased 0.67%
Bitcoin price is currently at $21,741.9, a 0.67% increase over the past 24 hours as of 4:00 p.m. as reported by [1] CoinDesks Digital Asset Classification Standard (DACS). Bitcoin has been highly volatile since its launch in 2009, as noted by [2] multiple sources, and was at a level of 42,247.84 one year ago, according to [3] CoinMarketCap. This is a change of 0.13% from yesterday, suggesting that Bitcoin’s price continues to fluctuate in the market.
References:
[1] Bitcoin Price | BTC Price Index and Live Chart [2] Bitcoin Price Tracker (BTC/USD) [3] Bitcoin Price
Is SEC increasingly regulate crypto market since FTX Crash?
Yes, the Securities and Exchange Commission (SEC) is taking a greater role in regulating the crypto market. The SEC has been bringing enforcement actions against those seeking to take advantage of investors in crypto markets, with a focus on investigating securities law violations related to crypto asset offerings, crypto asset exchanges, crypto asset lending and staking products, decentralized finance (“DeFi”) platforms, non-fungible tokens (“NFTs”), and stablecoins [1].
The agency is also increasing its staff to enforce financial regulations in cryptocurrencies and has indicated that most tokens are subject to securities law [2]. The SEC has also filed a cease-and-desist order against a crypto investor and promoter, and asserted its jurisdiction over the Ethereum network [3]. These developments suggest that the SEC will be more involved in the regulation of the crypto market.
References:
[1] SEC Nearly Doubles Size of Enforcement’s Crypto Assets and … [2] How SEC Regs Will Change Cryptocurrency Markets [3] Here’s Why the SEC Will Likely Be the Primary Cryptocurrency …Since the FTX crash, the Securities and Exchange Commission (SEC) has certainly become more aware of the need for regulation within the cryptocurrency market. Former SEC official Lisa Braganca [2] has said that while there may be calls for more regulations within Congress, she doubts they will act on them.
Meanwhile, current SEC Chairman Gary Gensler [3] has repeatedly said existing securities laws apply to the crypto industry and underscored his agency’s need for more resources to go towards regulating the sector. This heightened awareness of the need for regulation could lead to more rules and regulations being implemented in the near future, which could help to protect investors from future issues and make the crypto market more secure.
References:
[1] Will the FTX Collapse Lead to Better Cryptocurrency … [2] FTX’s Implosion Could Lead to Crypto Regulation … – CoinDesk [3] FTX Demise Fuels SEC, CFTC Clash Over Crypto ExchangesGovernor Christopher Waller Depreciated Cryptocurrencies
U.S. Federal Reserve Governor Christopher Waller has warned that the prices of cryptocurrencies could drop to zero at some point [1], and that if people choose to invest in them they should be aware of the risks of losses. He expressed concerns about banks and other financial intermediaries engaging in crypto activities, saying that they must meet Know Your Customer and anti-money laundering requirements [1].
Waller is also skeptical of central bank digital currencies (CBDCs) [1]. He warned that taxpayers should not expect to socialize any losses resulting from the crypto market crash [3]. So far, the effects of the crypto market crash have been minimal elsewhere in the financial system [1].
References:
[1] Fed Governor Warns Crypto Prices Could Fall to Zero [2] Fed Governor Warns Crypto Prices Could Fall to Zero [3] Bitcoin News on Twitter: “Federal Reserve Governor …US Securities and Exchange Commission (SEC) ordered Paxos to stop minting Binance USD
US regulators have ordered Paxos Trust Company, the firm behind Binance’s stablecoin, to stop minting Binance USD [1], citing “unresolved issues” related to the oversight of its relationship with Binance [2].
The move is the latest in a series of clampdowns on the crypto sector from the US Securities and Exchange Commission (SEC) and other US financial regulators [3], and may hurt Binance’s appeal to larger investors, analysts say. Binance CEO Changpeng Zhao has said that the regulator’s decision means that “BUSD market cap will only decrease over time,” although Binance will continue to support BUSD for the foreseeable future [2].
References:
[1] US regulator orders crypto firm to stop minting Binance … [2] New York regulator orders Binance stablecoin backer to stop … [3] US regulator orders halt to minting Binance-branded stablecoinSEC shut down Kraken’s staking
The U.S. Securities and Exchange Commission (SEC) has announced that it has settled charges against crypto exchange Kraken, fining the company $30 million for failing to properly register its staking service. [2] The shutdown of the service will affect only U.S. customers, and most assets enrolled in the service by U.S. users will be automatically unstaked starting on Thursday. [2] Kraken has agreed to immediately cease offering or selling securities through crypto asset staking services or staking programs and pay $30 million in disgorgement, prejudgment interest, and civil penalties. [1]
Kraken touts that its staking investment program offers an easy-to-use platform and benefits that derive from Kraken’s efforts on behalf of investors, including Kraken’s strategies to obtain regular investment returns and payouts, without disclosing that these benefits are not guaranteed. [1] The SEC’s investigation was conducted in response to Kraken’s alleged failure to register the offer and sale of its crypto asset staking-as-a-service program, whereby investors transfer crypto assets to Kraken for staking in exchange for advertised annual investment returns of as much as 21 percent. [1] The SEC’s complaint alleges that since 2019, Kraken has offered and sold its crypto asset “staking services” to the general public. [1]
References:
[1] Kraken to Discontinue Unregistered Offer and Sale of Crypto … [2] U.S. SEC targets crypto ‘staking’ with Kraken crackdown [3] Kraken to Shut US Crypto-Staking Service, Pay $30M Fine in …Gemini and Genesis charged by SEC
The Securities and Exchange Commission (SEC) has charged cryptocurrency lending firm Genesis Global Capital and crypto exchange Gemini with offering unregistered securities through Gemini’s “Earn” program [1]. According to the SEC, this constitutes an offer and sale of securities and should have been registered with the commission [2].
The complaint was filed in the U.S. District Court for the Southern District of New York [3]. The SEC has alleged that Genesis and Gemini raised billions of dollars’ worth of crypto assets from hundreds of thousands of investors through the unregistered offering [1]. Furthermore, the freeze on withdrawals from the Earn program caused by the SEC’s action has affected more than 340,000 investors [2]. Genesis and Gemini are also alleged to owe $900 million to Gemini’s clients [3].
References:
[1] SEC Charges Genesis and Gemini for the Unregistered Offer … [2] SEC charges Genesis and Gemini with selling … – CNBC [3] Gemini and Genesis charged by SEC with selling …
