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Crypto markets fall on regulators’ comments
The SEC chairman and the acting head of the OCC have addressed crypto assets. and continued its downward trend on Tuesday as SEC Chairman Gary Gensler and Office of the Comptroller Michael Hsu expressed concerns about the asset class. Crypto Markets Feel the Pain Crypto markets continue to fall, driven by a bearish regulatory outlook. Bitcoin briefly fell below $40,000 on Tuesday evening, testing key psychological support. In the last seven days, Bitcoin has fallen by over 12% but has since recovered slightly to sit at around $42,200. Ethereum has not performed any better and recorded…
Crypto markets fall on regulators’ comments
The SEC chairman and the acting head of the OCC have addressed crypto assets.
and continued its downward trend on Tuesday as SEC Chairman Gary Gensler and Office of the Comptroller Michael Hsu expressed concerns about the asset class.
Crypto markets are feeling the pain
Crypto markets continue to fall, driven by a bearish regulatory outlook.
Bitcoin briefly fell below $40,000 on Tuesday evening, testing key psychological support. In the last seven days, Bitcoin has fallen by over 12% but has since recovered slightly to sit at around $42,200.
Ethereum has fared no better, recording a 15% decline over the last week. The second-largest cryptocurrency briefly hit lows of $2,654 before recovering sharply. The price appears to have stabilized and is currently trading at around $2,930.
Market momentum was boosted yesterday by comments from SEC Chairman Gary Gensler. In an interview with The Washington Post, Gensler strongly reiterated his belief that many crypto assets qualify as securities and therefore fall under the jurisdiction of the SEC.
Regarding the current lack of regulation of crypto assets, Gensler said:
“I really fear that we will continue to bring these enforcement cases, but there will be a problem on trading and lending platforms, and frankly, if that happens, a lot of people will get hurt.”
Elsewhere, Michael Hsu, the acting head of the Office of the Comptroller, also expressed negative views on the crypto industry in a webcast with the Blockchain Association. Hsu issued a stark warning to listeners, comparing decentralized finance in the crypto industry to the practices that sparked the 2008 financial crisis. “Crypto/DeFi today is on a path that looks similar to CDS in the early 2000s,” he said.
While bearish news has dominated the first half of the week, there appears to be a silver lining for the crypto markets. Evergrande (OTC:), the Chinese real estate developer whose debt crisis has gripped financial markets, appears to be settling interest on its loans with the People's Bank of China, calming fears of the company defaulting.