There are lot of frauds in crypto word

There are a lot of frauds in crypto word

There are a lot of frauds in crypto word

According to Hester Pierce of the Securities and Exchange Commission, the United States dropped the ball on the crypto regulation and says the effects of its failure have woken it up overnight.

"There's a lot of fraud on this site because it's the hottest part of the world," he told CNBC on the sidelines of a blockchain meeting. "The other part that bothers me is how we get rid of the regulatory ball."

"We do not allow innovation to be successfully developed and tested, and this failure has far-reaching consequences," Paris said.

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WASHINGTON (Reuters) - The Securities and Exchange Commission, Hester Pierce, says the United States has thrown the ball at the regulation of cryptocurrencies, saying the effects of its failure have woken it up overnight.

"There's a lot of fraud in this area about why it's so important now," Paris told CNBC at this week's DC Blockchain meeting. "The only thing that bothers me is how we let go of the regulatory ball."

"We do not allow innovation to experience growth and success, and this failure has far-reaching consequences," he added.

A massive sale of digital assets wipes out more than half a billion dollars from the entire market in just one week, partly thanks to a subset of corrupt currencies, called stables.

The name derives from the fact that it is designed to stabilize the digital currency, whose values ​​are consistent with real-world assets, such as the US dollar, such as gold, or fiat currency. Fluctuations cause the currency to fluctuate steadily, at least in part. But the decline of the underground pool - one of the most popular fixed-income jobs in the United States. $ 1 - This has a huge impact on the entire cryptocurrency ecosystem. The shock wave has been criticized by lawmakers and conservatives.

"We can go after the fraud and be able to do a better job of innovation, but we have to get out of there and we have to work," Pierce said.

"I don't think we're ready to do that yet."

Wall Street's chief security regulator recently told its chairman, Gary Gansler, that he had difficulty dealing with more than 19,500 frauds, including by law enforcement. .....

But in a recent briefing by the House Appropriations Committee, Gansler made it clear that circulation within the SEC's jurisdiction could "rely heavily" on cryptocurrencies. The head of the SEC also acknowledged that Bitcoin was "probably" out of its scope - a strong word for it on the subject.

The chancellor's recent controversy over the regulatory jurisdiction of the bitcoin is similar to that of Clayton, the former chairman of the Securities and Exchange Commission, who has previously said that cryptocurrencies are "independent alternatives to the currency" and if "the dollar and the euro, let's go yen". I change. Bitcoin ... this type of currency is not safe.

The SEC has spent the last few months reviewing the inventory and expanding the scope of the Digital Assets Regulation.

In April, Gansler said Wall Street's largest regulator wanted to register and regulate corrupt platforms, and earlier this month, the agency announced that to protect investors in crypto markets, Kids should be doubled. Will go - out of 50 corrupt assets to lend and electronics. Equipment .. Available positions

"Dead exchanges should come and score," Gansler continued on Capitol Hill last week, "or, frankly, we can continue and use what Congress has given us in its mandate and experimental work." can."

The governor also recently told House lawmakers that the rules are "really clear." If you are raising money from the public and the audience expects a profit based on the efforts of this sponsor, then according to the SEC chief, this is a definite condition. Gensler says this is different from a component that lacks both sources, with no public procurement that can expect a response to the party's efforts behind the product.

Ask Congress for further clarification.

However, many participants welcome further clarification from the authorities. While the SEC is already dealing with you, the Paris Securities and Exchange Commission told CNBC.

He considered his strength, "It would be helpful if Congress could come and say, 'SEC, this is the role we think you should play.'" CFTC, now it's your turn. "

"One could argue that the SEC would be a better retail regulator if we decide to become a federal regulator, but again, it is up to Congress," Paris continued. "A lot needs to be done," he said. The current authorities should do this because traditional financial institutions want to get involved in corruption. "They need a regulatory explanation from us to do that."

Cynthia Looms, Virginia, and Kirsten Galbrand, New York. It aims to provide a definition of a bill that creates a comprehensive framework governing the cryptocurrency industry and divides oversight between regulators such as the SEC and CFTC. Public chat room Looms told CNBC that it hopes the digital asset regulator will "find a better place of control that is clear and understandable, and will not hinder innovation."

But until Congress passes some tough, tough laws to curb corruption, the laws will remain the same through dynamic enforcement.

Since the Securities and Exchange Commission launched its Dedicated Asset Monitoring Unit in 2017, more than 80 enforcement measures have been taken against corrupt assets and platforms.

The agency's lawsuit could lead to a legal battle against Ripple in San Francisco.

In 2020, the Securities and Exchange Commission accused Ripple, its CEO, Brad Girlinghouse, and the company's CEO of violating security rules when XRP, valued at 1. 1.4 billion, became the sixth-largest in the world. Sold cryptocurrency According to CoinGecko, the biggest sales, XRP has increased by 30% in the last 42 days.

Ripple says it has no token security - and is confused about which cryptocurrency falls into the control pool.

At one point, confusion about Ether, the world's second-largest cryptocurrency, spread from market capitalization, when the SEC director stated in 2018 that "the Ethereum network, its non-infrastructure, current offerings and sales of Ether Is not bargaining. "

Legal repatriation seems to be a sign of things before the war - and perhaps the SEC arm will be forced to explain why about 20,000 cryptocurrencies fall under its jurisdiction.