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SEC commissioner criticizes crypto bailouts as ECB president calls for staking regulations

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US SEC Commissioner Hester Pierce criticized the cryptocurrency bailout in a recent Forbes interview and said the current market crash could set the stage for a more sustainable future for the industry.

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Hard times in the industry are opening up projects and products that will stand the test of time, Pierce said.

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She added that current market conditions provide regulators and market participants with an opportunity to learn how the cryptocurrency market is responding to acute stress.

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Pierce said:

It is useful for us to see common ground. This is a time to learn not only for market participants but also for regulators so that we can better understand how the market works.

She added that the SEC can learn more about the industry during market downturns than during bull runs. In her opinion, scammers will take advantage of market conditions, and the SEC could learn from this.

Commissioner Pierce Condemns Cryptocurrency Bailout

Speaking of bailing out troubled crypto companies, the SEC commissioner said she doesn’t support bailing out the industry.

Pierce said:

Crypto does not have a rescue mechanism. And this was perceived as one of the strengths of this market.

She also clarified that the SEC does not have the power to bail out crypto companies, but even if the commission had the power, it would still prefer to “let it all happen.”

Due to liquidity issues, crypto companies such as Celsius Network, BlockFi, Three Arrows Capital, Babel Finance, and Maple Finance have recently made the news.

On June 21, BlockFi received a $250 million loan from leading cryptocurrency exchange FTX to replenish its reserve lists.

ECB President Calls for Rules for Crypto Lenders

Meanwhile, ECB President Christine Lagarde called to regulate crypto staking and lending firms.

Lagarde said:

Innovation in these uncharted and uncharted territories puts consumers at risk as the lack of regulation is often associated with fraud, completely illegal valuation claims and very often speculation as well as criminal transactions.

The President of the ECB has previously stated that cryptocurrencies are highly speculative investment vehicles that the authorities should regulate.





Credit : cryptoslate.com

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