At the moment, the crypto market has no authorized framework to safeguard its integrity or defend buyers from fraud and manipulation. It has been a serious concern for regulators. Gensler mentioned that he needs to revive confidence out there by way of regulation. Bitcoin, the world’s largest cryptocurrency by market capitalization, fell by greater than half of its worth to $24,000 from its all-time excessive of $67,566 in August 2021. In different information, the US Federal Reserve and the Federal Deposit Insurance coverage Company (FDIC) have issued a discover to the bankrupt crypto lending agency Voyager to cease making “false claims” to its clients that their funds are insured by the federal government. ”Primarily based on the data gathered so far, it seems that these representations doubtless misled and had been relied upon by clients who positioned their funds with Voyager and would not have rapid entry to their funds,” the Federal Reserve and FDIC mentioned in a joint assertion.
We’ve got guidelines in our capital markets to safeguard market integrity & defend towards fraud & manipulation. If an organization builds a crypto market that protects buyers & meets the usual of our market laws, individuals will extra doubtless have higher confidence in that market. pic.twitter.com/ZxdBfvmqXP
— Gary Gensler (@GaryGensler) July 28, 2022
Voyager filed for chapter on July 5 after it was revealed that it had invested $661 million within the failed crypto hedge fund 3AC.
Along with the @FederalReserve, we issued a letter to #VoyagerDigital, demanding they stop and desist from making false and deceptive statements on their FDIC deposit insurance coverage standing and take rapid motion to right these false statements. https://t.co/sWv1n7z710
— FDIC (@FDICgov) July 28, 2022