{"id":4305,"date":"2022-05-20T23:41:27","date_gmt":"2022-05-20T23:41:27","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=4305"},"modified":"2022-05-20T23:41:28","modified_gmt":"2022-05-20T23:41:28","slug":"sec-chair-gensler-warns-a-lot-of-crypto-tokens-will-fail-following-luna-ust-collapse","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4305","title":{"rendered":"SEC Chair Gensler Warns a Lot of Crypto Tokens Will Fail Following LUNA, UST Collapse"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned that a lot of crypto tokens will fail and many crypto investors will get hurt following the collapse of terra (LUNA) and stablecoin terrausd (UST).<\/strong><\/p>\n<h2>SEC Chair Gensler\u2019s Warning After LUNA and UST Collapse<\/h2>\n<p>U.S. Securities and Exchange Commission Chairman Gary Gensler expressed his concerns Wednesday that more crypto investors will be harmed following the implosion of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).<\/p>\n<p>He told reporters after a House Appropriations Committee panel hearing:<\/p>\n<p>I think a lot of these tokens will fail \u2026 I fear that in crypto\u2026 there\u2019s going to be a lot of people hurt, and that will undermine some of the confidence in markets and trust in markets writ large.<\/p>\n<p>Last week, algorithmic stablecoin UST lost its peg to the U.S. dollar, sending its price and the price of cryptocurrency LUNA into free fall.<\/p>\n<p>The collapse of the two cryptocurrencies has caused grave concerns among regulators and lawmakers. U.S. Treasury Secretary Janet Yellen cited the collapse of UST while calling for increased regulations of stablecoins last week.<\/p>\n<p>Gensler said Wednesday that SEC-registered asset managers do not have significant exposure to crypto assets. However, he noted that his agency has less visibility into private funds, particularly family offices. The SEC chief believes that most cryptocurrencies out there are securities. He has been urging cryptocurrency trading platforms to approach the SEC and register.<\/p>\n<p>\u201cThere is a path forward that we\u2019re talking with these exchanges about to do both: to get the platforms registered and have a pathway for the tokens as well,\u201d he said, noting that the agency has the authority to create exemptions where necessary. He added:<\/p>\n<p>They should move towards getting registered or, you know, we\u2019re going to be the cop on the beat, and we\u2019re going to bring the enforcement actions.<\/p>\n<p>However, Gensler has been heavily criticized by some for taking an enforcement-centric approach to regulating the crypto sector. He announced earlier this month that the SEC plans to nearly double the size of its Enforcement Division\u2019s crypto unit.<\/p>\n<p>The SEC chairman indicated Wednesday that his agency does not have enough resources to adequately police financial markets. He stressed:<\/p>\n<p>We\u2019re really outpersonned.<\/p>\n<p>Commenting on the SEC lacking resources, U.S. Representative Tom Emmer tweeted to Gensler:<\/p>\n<p>You put all of the SEC\u2019s taxpayer funded resources into crypto crackdowns. Now you don\u2019t have the funds to do your actual job so you\u2019re coming to Congress for more? You\u2019ve got to be kidding me.<\/p>\n<p><em><strong>What do you think about Gary Gensler\u2019s comments and his crypto regulatory approach? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/sec-chair-gensler-warns-a-lot-of-crypto-tokens-will-fail-luna-ust-collapse\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned that a lot of crypto tokens will fail and many crypto investors will get hurt following the collapse of terra (LUNA) and stablecoin terrausd (UST). SEC Chair Gensler\u2019s Warning After LUNA and UST Collapse U.S. Securities and Exchange Commission Chairman Gary [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4306,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-4305","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4305"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4305\/revisions"}],"predecessor-version":[{"id":4307,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4305\/revisions\/4307"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4306"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}