SEC Nominee: Regulators Should Prevent Bad Practices Regarding Crypto

SEC Nominee Gary Gensler believes that crypto and Bitcoin, in general, are good but that regulators have to prevent bad practices associated with the new technologies as we see more in our latest cryptocurrency news.

The SEC Nominee Gary Gensler was like music to the ears of crypto enthusiasts during the US Congress hearing but a small part raised some red flags and contributed to the markets closing the day with a red candle when BTC started recovering from the crash. Gary Gensler is nominated by US President Joe Biden to become the next SEC Chairman. Bitcoin closed the day with a loss of 2.3% in the past day but 6% down between the highs and lows. Gensler’s statement catalyzed a reaction as the eastern makers brought things back to normal.

Gensler is a well-known crypto expert and he studies cryptocurrencies from a legal standpoint as well as teaches on the subject at MIT. During the previous year, Gensler worked on The Dodd-Frank Act which helped shape the US Financial system after the 2008 crisis. He asserted that cryptocurrencies were a major catalyst for a change, calling for new legal instruments that will protect the investors without affecting innovation:

 “(If confirmed) the SEC would work with fellow commissioners to both promote the new innovation, but also, at the core, ensure for investor protection.”

Gensler’s interventionist approach could be worrisome for some holders as he said that the SEC should take a proactive role when it comes to regulating the markets:

 “(The SEC must ensure that crypto markets) are free of fraud and manipulation, and I think that’s the greater challenge, frankly, because some markets, usually operating overseas, have been rife with fraud.”

During his time at the CFTC, Gary Gensler hinted that ETH and XRP were securities despite a former commissioner contradicted him on the ETH stance while XRP is disputing this nature. If Gensler is confirmed, the situation will be an obstacle for Ripple to save XRP And could set a precedent for other projects as well. There’s still a lot of room for speculation as he needs to act according to a specific set of guidelines.  Nothing can be taken for granted it seems at Bitcoin is changing trends over the past few days and it seems that it will go after all of the recent events.