The price of Bitcoin has dropped over 2% in the last 24 hours as it has reached its weakly lowest phase since SEC has called for harder regulatory measures on cryptocurrency including Bitcoin. The news has made investors and traders fear about investing in BTC causing a price fall.
Gary Gensler, who is the new Chair of the US Securities and Exchange Commission (SEC) told Bloomberg in an interview that he wanted more strict regulation of crypto assets to protect consumers and their rights.
“If somebody wants to speculate, that’s their choice, but we have a role as a nation to protect those investors against fraud, ” Gary had told The News Wire earlier in a different interview.
In an interview published in Bloomsberg on Tuesday, the SEC Chair was talking about additional regulations along with the present ones to make cryptocurrency more secure which hasn’t been responded to too well by the market.
“We need additional congressional authorities to prevent transactions, products, and platforms from falling between regulatory cracks. We also need more resources to protect investors in this growing and volatile sector,” Gary Gensler told Bloomsberg.
When it came to reactions to SEC Chair’s statement, Mati Greenspan, the founder of Quantum Economics showed his disappointment over the remarks. He compared Gary’s method of work to the former Chairman Jay Clayton’s.
“Rather than try and define new rules of the road, he seems quite content with the old Howey Test, which he (Jay Clayton) praised. In truth, those laws probably were pretty good for business in the 1940s, but it would probably be a lot better for today’s businesses if crypto entrepreneurs had a better understanding of what’s allowed and what’s not, ” Greenspan said.
At the time of publishing this article, Bitcoin was being traded at $38,084 with a more than 2% drop over 24 hours and more than 5.5$ weekly fall.