According to the Chairman of the Securities and Exchange Commission (SEC) Gary Gensler, it is possible to regulate the cryptocurrency market using the existing securities legislation.
This week, Gensler commented on the collapse of the UST stablecoin. The head of the SEC predicts that in the near future we will face the fall of many projects related to the cryptosphere.
The collapse of digital currencies will deal a devastating blow to investors, and the authorities need to tighten control over the industry to protect its participants. Traders should be ready to lose money at any moment if they decide to buy cryptocurrencies.
The fall of such instruments to zero values is a very real scenario, the official stressed. He also warned bitcoin exchanges and wallets to be transparent. Otherwise, the US authorities will apply sanctions against unscrupulous crypto companies.
Gensler said: "I think many of these tokens will fail. I'm afraid that many people will suffer because of this. Companies must register, and we will be the police and take the necessary measures."