Ever since Gary Gensler has been sworn in as the new chief of the Securities and Exchange Commission of the United States, many eyes are set on him to get a glimpse of how the environment for crypto is going to turn out for American traders. After a long silence, Gensler has opened up about his stance on the cryptocurrencies regulations. He was summoned to a virtual hearing by House Financial Committee.
Patrick McHenry, North Carolina representative of the Committee, asked Gensler about SEC’s stance to introduce a lucrative digital asset market space with regulated revenue streams and legal statutes. Gensler replied that crypto exchange platforms have room for offering a more secure environment for crypto traders. He also added that both SEC and Commodity Futures Trading Commission have a non-existent regulatory framework for crypto markets.
Gensler Endorses the Idea of SEC to Stay away from Bitcoin and Cryptocurrencies Trading
It seems that Gensler has been pushed into taking a stance on the ongoing crypto market fever. In the past, he has endorsed SEC’s stance on staying neutral about the Bitcoin markets and crypto trading in general. In the recent congress hearing, he expressed an interest in complying with the government’s demand for regulating cryptocurrencies. However, he also added that the commission would only act as per its legal limitations.
The current congress meeting was focused on the GameStop Stock fiasco. A few traders from the Reddit community called the WallStreetBets managed to short squeeze the price of the stock to new heights. However, in the end, many people lost a lot of money as the price of the controversial stock rose from $469.49 to below $50. Lawmakers are also taking a stern stance on Robinhood’s alleged market manipulation heretics and the hedge funds behind the scenes that caused the GME short market squeeze.
Jesse Powell, CEO of one of the largest crypto exchanges, Kraken, remarked that the environment for cryptocurrencies is not very encouraging in the United States. Powell was speaking to CNBC a few weeks ago. He confirmed the news for Kraken’s public listing in 2022. However, Powell told the media that the crypto exchange was cynical about the Coinbase public listing.
Kraken’s CEO told the media that countries like China are dealing with cryptocurrencies in a very organized and attentive manner. He also added that if the stance of the US government does not mellow down, many crypto enterprises could eventually opt out of the country in search of new and friendly markets.