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Gensler: Crypto Leverage and Lack of Disclosure

Gary Gensler is the chair of the US Securities and Exchange Commission. He says that lack of disclosure and excessive leverage are two of the main factors that hurt the crypto industry. The SEC Chair’s comments on Thursday come at a time when the crypto sector is firmly in the spotlight again. It’s the shocking…


Gary Gensler is the chair of the US Securities and Exchange Commission. He says that lack of disclosure and excessive leverage are two of the main factors that hurt the crypto industry.

The SEC Chair’s comments on Thursday come at a time when the crypto sector is firmly in the spotlight again. It’s the shocking news about what happened to the FTX cryptocurrency exchange.

As CoinJournal reported earlier today, FTX is insolvent and this just added the inreased regulatory attention and overall rage around the crypto community.

Leverage and no disclosure is a ‘toxic mix’

As has been widely reported, FTX’s implosion was down to Alameda Research blowing billions of dollars in trading and leaving FTX with a $8 billion hole. FTX customers possessed the money.

When you mix together a bunch of customer money and borrowing against it, investors get hurt,” Gensler told Andrew Ross Sorkin on CNBC’s ‘Squawk Box’.

He added: “This is a very interconnected world in crypto with a few concentrated players. When markets turned on them it appears that a lot of customers lost money.”

Gensler has previously called on crypto exchanges and other providers to embrace regulation as well as offer more disclosures to better protect investors.

It’s a field that’s significantly non-compliant, but it’s got regulation,” the SEC Chair said, pointing out that crypto investors from all over the world are getting rekt. Consumers are also falling for celebrity promotions and not much disclosure.

This is not like the NYSE or Nasdaq. These platforms mix. They take money from people and then borrow against it. It is a dangerous combination. But not much disclosure, and then they trade against their customers,” “he regulator explained.


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Bitcoin Demand Shows Signs of Cooling as Whale and ETF Purchases Halve: Cryptoquant

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XCN defies Bitcoin and Ethereum slump with 97% spike

Onyxcoin (XCN) has risen 97% in the past 24 hours as altcoins enjoy massive buying pressure. The XCN price bucks the trend that saw Bitcoin and Ethereum down after notable gains a day earlier. Tariffs and other market conditions weigh on investor sentiment. Onyxcoin (XCN) has defied a dip for Bitcoin, Ethereum, and top altcoins…


  • Onyxcoin (XCN) has risen 97% in the past 24 hours as altcoins enjoy massive buying pressure.
  • The XCN price bucks the trend that saw Bitcoin and Ethereum down after notable gains a day earlier.
  • Tariffs and other market conditions weigh on investor sentiment.

Onyxcoin (XCN) has defied a dip for Bitcoin, Ethereum, and top altcoins with an impressive 97% over the past 24 hours.

In a price rally that put it on top of the daily gainers’ list, XCN shot up to an intraday high of $0.017.

The performance bucks the downward pressure that has seen Bitcoin (BTC) and Ethereum (ETH) pare gains from a day ago with dips below $80k and $1.5k, respectively.

XCN price performance

The XCN token’s standout performance sees it outpace Flare, Kaspas, and Walrus, among other notable gainers.

According to data from CoinMarketCap, XCN is currently trading at $0.017, with its volume up 1,230%.

XCN chart by CoinMarketCap

The token’s market, though tiny at $531 million, is up 97% and puts Onyxcoin in the top 100 by market cap.

XCN has flipped Floki and CORE, which currently rank 100th and 99th by market cap, respectively.

Onyxcoin’s massive spike comes despite a broader risk market downturn in the past 24 hours.

BTC, ETH, and other coins’ dip has seen the global cryptocurrency market cap drop by 3.9% to $2.52 trillion.

Volume is down 20% to about $127 billion as crypto mirrors losses on Wall Street.

Overall market outlook

Crypto and the stock market rose sharply on Wednesday after US President Donald Trump changed his tariffs stance.

His announcement of a 90-day pause sent risk assets skyrocketing, with Bitcoin’s price breaking to above $82k.

S&P 500 and the Dow Jones Industrial jumped, rising by historic single-day gains.

However, the S&P 500 and Dow opened lower on Thursday and looked to close lower with 3.2% and 2.4 %, respectively.

Dow was down more than 900 points.

On Thursday, Trump announced an additional 25% tariff on China, bringing this to 145%.

After excluding it from the 90-day pause, analysts say the trade war will continue to hurt optimism.

This looks to be the case as stocks sold off despite the latest inflation report that showed CPI dropped to 2.4% against an expected 2.6%.

While this sees many turn to the Federal Reserve for expectations of interest rate cuts, analysts are pointing to “sticky” prices and tariff impact for likely pressure on equities and crypto. Analysts point to a potential bull trap.

Peter Schiff said via a post on X:

“I’ve never seen such a mass selloff of US assets. The US dollar, bonds, and stocks are all getting killed. I can’t remember when the dollar lost 3.5% against the Swiss franc in one day. America’s ride on the global gravy train is about to come to a screeching halt. Buckle up.”


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