SEC chair Gary Gensler pushes for stronger crypto regulations

August 04, 2021 09:04 PM AEST | By Anuj

SEC chair Gary Gensler pushes for stronger crypto regulations — Image source: Image Copyright © 2021 Kalkine Media

Gary Gensler on Bitcoin ETF and DeFi

Gary Gensler, a blockchain technology and crypto expert, added that the SEC is exploring digital asset offerings such as Bitcoin exchange-traded funds (ETFs) but has not decided any date for their launch.

On decentralized finance (Defi), the SEC has been evaluating at least seven crypto aspects such as ETFs, DeFi, stablecoins, etc. Mr. Gensler compared staking in crypto tokens to mutual funds that offer long-term returns for pooling digital currencies at any DeFi platform. Hence, the SEC could also regulate decentralized projects and pool staking firms.

Elizabeth Warren’s effect on SEC

On July 8, US Senator Elizabeth Warren stated that the crypto market requires a consolidated regulatory action to safeguard investors from growing frauds in the digital tokens space. She believes that SEC could act against illegal activities in the crypto industry to safeguard investors’ interests.

In letter to Gary Gensler, the Senator highlighted illicit activities, unsustainable use of energy for crypto mining and Ponzi token schemes and sought regulations in the crypto ecosystem.

Bitcoin (BTC) reacts to Gensler’s statement

Bitcoin’s prices have been retreating after hitting over US$ 42,000 apiece over the last weekend, guided by the SEC head’s comment on crypto regulation.

Bitcoin’s one-year price trajectory against moving average multiple. (Source: Refinitiv)

BTC token was marching below US$ 38,000 apiece at the time of writing this report. World’s biggest crypto-token, Bitcoin, dropped as much as two per cent in the last 24 hours (7:35 AM UTC). Its value is still up 30 per cent year-to-date (YTD).

BTC’s short-term support is ranging around US$36,000-US$35,000 apiece. It may face resistance around US$ 44,000 apiece in the next bullish trend.

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