WASHINGTON — Securities and Exchange Commission Chairman Gary Gensler said on Wednesday he worries that more investors will be harmed in the cryptocurrency market, following the collapse of the stablecoin known as TerraUSD this month.
Gensler told reporters after his congressional hearing on Wednesday: “I think a lot of these tokens are going to fail. “I fear that in crypto… there will be a lot of people getting hurt, and that will undermine some confidence in the market and confidence in the big market.”
The cryptocurrency market has shed more than $1 trillion in value in the past six months as the Federal Reserve begins to relax its easy money policies and regulators draw their attention to money. electronic. The sell-off accelerated in early May after the central bank raised interest rates. TerraUSD, a token whose price was supposed to remain fixed to the dollar, suddenly fell, along with the meaningful coin that backed it, called Luna.
The turmoil has stoked uncertainty in some respects about its potential spread to other asset classes. Rostin Behnam, Chairman of the Commodity Futures Trading Commission, cited Monday the possibility of a “direct impact on traditional assets and traditional markets” should crypto prices plummet.
Gensler said Wednesday that crypto exposure among asset managers registered with the SEC is negligible but that the agency has less visibility for private and special funds. especially in family offices. The SEC proposed a rule in January that would increase the amount and timeliness of confidential information that private equity and hedge funds provide through a document known as Form PF.
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https://www.wsj.com/articles/more-crypto-market-turmoil-is-predicted-by-sec-chairman-gary-gensler-11652906029?mod=rss_markets_main More Crypto Market Turmoil Is Predicted by SEC Chairman Gary Gensler