Former Rival Biden Discussed With The Head Of The SEC The Collapse Of The Cryptocurrency Market

Elizabeth Warren urges US Securities and Exchange Commission chairman Gary Gensler to clearly regulate digital assets to protect retail investors.

The collapse of the cryptocurrency market on September 7 demonstrates the need for clear regulation of the industry by the US Securities and Exchange Commission (SEC).

Massachusetts Senator Elizabeth Warren, who competed with Joe Biden for the right to become the US presidential candidate from the Democratic Party, announced this at a meeting of the banking committee .

Warren recalled that during the sharp decline in quotations, the largest crypto exchanges experienced a heavy load and some of their functions were not available to users.

The senator cited as an example a situation in which a retail investor could invest in cryptocurrency before the market crash and try to withdraw his money during peak load.

According to Warren, the investor in this situation had no chance to protect their savings.

“The $ 400 billion in market value simply evaporated in a matter of hours,” the politician said.

SEC chief Gary Gensler agreed with the senator and noted that in this case, retail investors really did not have the opportunity to protect their funds, since crypto exchanges are not regulated by federal law.

On September 14, Gensler compared the realm of digital assets to the Wild West and urged cryptocurrency projects to register with the SEC.

According to Gensler, there are tens and hundreds of tokens on various trading platforms that may be subject to securities laws and require registration.

On the evening of September 7, the price of bitcoin in less than an hour fell by $ 8.5 thousand. At the moment, the rate of the first cryptocurrency fell to $ 42.8 thousand (a decrease of 16% per hour).

Due to the sharp collapse of quotations, traders’ positions for $ 3.5 billion were liquidated . Within a day after the collapse, the capitalization of the digital asset market decreased by more than $ 300 billion.

As a result of the peak load, the largest cryptocurrency exchanges experienced disruptions. Coinbase, Gemini and Kraken reported about the incorrect operation of their services .