{"id":5090,"date":"2022-06-21T08:08:53","date_gmt":"2022-06-21T08:08:53","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=5090"},"modified":"2022-06-21T08:08:53","modified_gmt":"2022-06-21T08:08:53","slug":"sec-chair-warns-of-too-good-to-be-true-crypto-products-us-treasury-calls-for-urgent-regulation","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5090","title":{"rendered":"SEC Chair Warns of &#8216;Too Good to Be True&#8217; Crypto Products \u2014 US Treasury Calls for Urgent Regulation"},"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 the public about crypto investments that seem \u201ctoo good to be true.\u201d Meanwhile, the U.S. Treasury Department says that the recent crypto market turmoil underscores the urgent need for regulatory frameworks that mitigate the risks posed by digital assets.<\/strong><\/p>\n<h2>SEC Chair Gensler\u2019s Crypto Warning<\/h2>\n<p>SEC Chairman Gary Gensler cautioned investors last week about crypto lending platforms offering products that seem too good to be true, Reuters reported.<\/p>\n<p>The securities regulator\u2019s warning followed crypto lender Celsius Network\u2019s withdrawal freeze early last week.<\/p>\n<p>\u201cWe\u2019ve seen again that lending platforms are operating a little like banks. They\u2019re saying to investors \u2018Give us your crypto. We\u2019ll give you a big return 7% or 4.5% return,&#8217;\u201d Gensler was quoted as saying. \u201cHow does somebody offer (such large percentage of returns) in the market today and not give a lot of disclosure?\u201d<\/p>\n<p>The SEC chair stressed:<\/p>\n<p>I caution the public. If it seems too good to be true, it just may well be too good to be true.<\/p>\n<p>The SEC and several state securities regulators are currently investigating Celsius Network\u2019s decision to freeze withdrawals. According to reports, the company subsequently hired Citigroup as an advisor and sought help from Akin Gump Strauss Hauer &amp; Feld, a law firm that specializes in financial restructuring.<\/p>\n<p>Following Celsius, Hong Kong-based Babel Finance temporarily suspended withdrawals and redemptions of its crypto products.<\/p>\n<h2>Treasury Official Stresses Urgent Need for Crypto Regulatory Frameworks<\/h2>\n<p>The collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST) in early May and troubles at crypto lending platforms have shaken the crypto market.<\/p>\n<p>Bitcoin fell below $20K for the first time since 2020 this weekend as the overall crypto market shed over a trillion dollars in market capitalization since mid-April.<\/p>\n<p>Following the crypto market sell-off, an official with the U.S. Treasury Department highlighted the urgent need for cryptocurrency regulation last week. Nothing that the Treasury Department is \u201cmonitoring activity in the crypto market,\u201d the official told Reuters:<\/p>\n<p>We believe the recent turmoil only underscores the urgent need for regulatory frameworks that mitigate the risks that digital assets pose.<\/p>\n<p>\u201cWe continue to work closely with our regulatory partners, as they take action under their existing authorities, and offer guidance and expertise as Congress considers legislation to further address these risks,\u201d the official detailed.<\/p>\n<p><em><strong>What do you think about SEC Chair Gensler\u2019s warning? 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-warns-of-too-good-to-be-true-crypto-products-us-treasury-calls-for-urgent-regulation\/\" 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 the public about crypto investments that seem \u201ctoo good to be true.\u201d Meanwhile, the U.S. Treasury Department says that the recent crypto market turmoil underscores the urgent need for regulatory frameworks that mitigate the risks posed by digital assets. SEC Chair [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-5090","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\/5090","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=5090"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5090\/revisions"}],"predecessor-version":[{"id":5092,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5090\/revisions\/5092"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5091"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}