The SEC Chairman Made a Strange Analogy For Stablecoins!

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Stablecoins have been attracting the reaction of US officials in particular for some time. Senators are pressing regulatory agencies in the country to take steps on this issue. In cooperation with other partners, the SEC is preparing a detailed report on these and other crypto-oriented issues. It is hoped that the report, which is expected to be announced soon, will provide an idea of inclusive regulations related to the crypto currency markets.

Stablecoin Concerns

The Washington Post who interviewed columnist David Ignatius live at 19:00 Turkish time SEC Chairman Gensler he made important statements. We shared the explanations in general terms in our news at 19:00, but stablecoins we need to focus on this in more detail.

After the statements of the SEC Chairman, the price of Bitcoin fell.

Tether had recently been raised about the Evergrande shares, but denied them. Stablecoins that do not act transparently in relation to their collateral, and especially Tether (USDT), create a serious fear in the market. Because the steps to be taken against Tether will certainly affect all crypto currency markets. Moreover, the effects of this may be more severe than China’s bans.

Poker Chips and Stablecoins

Gary Gensler, Chairman of the US Securities and Exchange Commission, compared stablecoins to poker chips:

Stablecoins it looks like the poker chips in the casino right now”. (Exchanges say casino and stablecoins mean poker chips)

For stablecoins that you think have similar features to some investment contracts Chairman of the SEC it promises comprehensive regulations. The SEC and the Commodity Futures Trading Commission may take surprise steps within their powers in cooperation.

On the other hand, a large number of political, relevant institutions, especially Senator Warren DeFi and he’s putting pressure on them to take steps related to stablecoins. Gensler crypto currencies in particular blockchain and Bitcoina name that understands the philosophy of , but also sees pitfalls in the industry.

No one can say that the SEC Chairman was wrong about this. Currently Coinmarketcap there are 11,000 different crypto currencies listed in their systems. The important part of them is ERC-20 or BEP-20 token assets that are printed as and are of no use. But not all projects that allocate a decent advertising budget can find a serious number of buyers. Of course, the recipients they find disappear by flipping off all the tokens they have printed on.

In the next few days THE FED, stablecoin risks and other regulatory FUDs are expected to affect the markets. Although the end-of-year price targets are in the six digits for Bitcoin, it is necessary to be prepared for a bad scenario.

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