U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler asked for greater authority when it comes to the crypto industry. Gensler wrote a letter to Senator Elizabeth Warren, citing digital asset investors need further protection.
Gensler previously raised concerns about cryptos being a major threat to the financial system in the United States, emphasizing on stablecoins. This type of digital currency “could facilitate those seeking to sidestep a host of public policy goals” related to the US financial system - anti-money laundering, tax compliance, and sanctions.
Also, the SEC chairman pointed out the need for a “plenary” or complete authority to regulate the cryptocurrency industry, especially focusing on crypto trading, lending, and decentralized finance platforms.
“With an increase in crypto oversight authority by the SEC, the agency could properly monitor transactions, products, and platforms in the cryptocurrency market,” Gensler added.
Gensler’s concerns come as crypto trading platforms typically list around 50 cryptocurrencies and around 100 tokens on their sites. However, each crypto’s legal status depends on its facts and circumstances, opening a possibility that at least one token could be considered as a security.
Meanwhile, many offshore crypto exchanges found a genius way to bypass SEC’s regulations, allowing US citizens to participate in crypto trading activities through a VPN connection.
Furthermore, since the SEC can only regulate cryptos, which the agency considers as securities, Bitcoin is considered a security under US laws. The commodity status of Bitcoin puts it outside SEC’s jurisdiction, thus – the industry leader remains outside SEC’s regulatory oversight.
Pricewise, despite the 4% correction Bitcoin is experiencing currently, its price is nearing a golden cross on the 12-hour chart. Furthermore, the 50 twelve-hour Simple Moving Average (SMA) slicing above the 200 twelve-hour SMA could incentivize buying pressure in the short term.
Both trading volumes and price action are moving sideways, indicating a consolidation period ahead for the crypto leader. However, a break above $45,000 could skyrocket Bitcoin to the diagonal trend line at $47,817. If such an event occurs, experts believe the next step for Bitcoin would be the 78.6% Fibonacci extension level at $51,087.
However, if Bitcoin bulls don’t hold on to the bearish pressure, the first possible line of defense is the 50% Fibonacci extension level at $42,961.