Skip to content

SEC commissioner criticizes crypto bailout as ECB chairman calls for rules to be at stake

SEC commissioner criticizes crypto bailout as ECB chairman calls for rules to be at stake

Want to work with us? CryptoSlate is hiring for a handful of positions!

US SEC Commissioner Hester Pearce Criticizes Recent Crypto Bailouts forbes interview And said the current market crash could lay the foundation for a more sustainable future for the industry.

According to Pearce, tough times in the industry reveal projects and products that will stand the test of time.

He added that the current market situation provides an opportunity for regulators and market participants to learn how the crypto market reacts to acute stress.

Pierce said:

It is helpful for us to see the points of connection. This is a learning moment not only for market participants but also for regulators, so that we can better understand how markets operate.

He added that the SEC can learn more about the industry during a bull run this way than during a market downturn. In his opinion, scammers will take advantage of market conditions, and the SEC can learn from that.

Commissioner Pearce Condemns Crypto Bailout

Speaking about bailouts for troubled crypto companies, the SEC commissioner revealed that she does not support bailouts for the industry.

Pierce said:

Crypto does not have a bailout mechanism. And it is considered as the force of that market.

She also clarified that the SEC does not have the authority to bail out crypto companies, but that even if the Commission did, it would prefer to ‘let these things out’.

Due to liquidity issues, crypto companies such as Celsius Network, BlockFi, Three Arrows Capital, Babel Finance and Maple Finance have been in the news recently.

On June 21, BlockFi secured a $250 million credit facility from leading crypto exchange FTX to strengthen its reserve sheet.

ECB chairman calls for regulations for crypto lenders

Meanwhile, ECB President Christine Lagarde called For regulation of crypto staking and lending firms.

Lagarde said:

Innovations in these unexplored and unknown areas put consumers at risk, where a lack of regulation often covers criminal transactions along with fraud, completely illegitimate claims about valuations, and often speculation.

The ECB chairman has previously stated that cryptocurrencies are highly speculative investment instruments that the authorities should regulate.

Posted in: US, Regulation

credit source

SEC commissioner criticizes crypto bailout as ECB chairman calls for rules to be at stake

#SEC #commissioner #criticizes #crypto #bailout #ECB #chairman #calls #rules #stake

if you want to read this article from the original credit source of the article then you can read from here

Shopping Store 70% Discount Offer

Leave a Reply

Your email address will not be published.