‘Going Rogue’—Major Crypto Investor Issues Serious SEC Warning After Wild Bitcoin and Ethereum Price Swings
Tensions are high in crypto markets following the shock implosion of three major banks last week – causing a potentially worldwide Federal Reserve bombshell.
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The price of Bitcoin has jumped nearly 20% over the past month, driving the price of ethereum and other major cryptocurrencies higher despite fears still swirling of “devastating investor carnage.”
Now, as the US Securities and Exchange Commission (SEC) steps up enforcement actions against crypto companies, the head of policy at venture capitalist Andreessen Horowitz (a16z) has accused the SEC of “going rogue” in its pursuit of cryptocurrencies.
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“The SEC is completely out of control. They are going rogue,” Brian Quintenz of a16z, a former commissioner of the Commodities Futures Trading Commission (CFTC), said during the financial conference this week, it was reported by Coindesk. Quintenz went on to warn that the US risks falling behind in the race to promote crypto technology.
“The United States has to make a decision about whether they want to embrace and support innovators in this country. There are jurisdictions that are aware of this. That’s not what we’re seeing in the United States, and the clock is ticking.”
The SEC, led by Chairman Gary Gensler, has brought various enforcement cases against crypto companies over the past year, arguing that almost all cryptocurrencies meet the definition of a security. In early 2021, the SEC sued XRP developer Ripple for selling unregistered securities, starting a long-running lawsuit that it is still fighting.
The crypto industry, led by US exchange CoinbaseCOIN, has been highly critical of the SEC approach, demanding that it create specific crypto rules.
“We are considering this regulation by enforcement because it sets new legal precedent through an enforcement action, but it would be much better for the entire industry if we just had clear rules for the road,” Perianne Boring, founder and CEO of the company. Chamber of Digital Commerce, told Reuters.
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Last week, the former head of internet enforcement at the SEC predicted that FTX rival Binance, the world’s largest crypto exchange, could see a run on deposits — potentially causing “devastating investor bloodshed.”
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