With the crypto market facing a crisis, many have turned to offering their solutions to avoid such situations in the future. The United States Security and Exchange Commission suggested in a recent discussion that the market should consider regulatory measures if it aims to maintain its confidence.
TerraUSD’s latest fiasco has left the market in a state of disarray as even the crypto king is floating in the red zone right now. The stablecoin, which should be protected by the algorithm, fell deep, pushing LUNA to $ 0.
The fall, however, was not limited to the Terra ecosystem alone, as TVL’s entire market lost more than $ 100 billion. Terra TV’s 30 billion TVL was almost 99% and dropped to $ 300 million. On the other hand, Bitcoin, which gained slightly over the weekend, re-launched the slide on Monday and is currently trading below $ 30,000. It is a huge investment for investors, as BTC rises above $ 60,000 in the last few months.
Following the market crash, Gary Gensler of the US Securities and Exchange Commission said the secret money was too much speculation. Adequate measures are in place to protect investors from fluctuations or exploitation.
He added that cryptocurrency purchases do not come with full disclosure as do regulated markets. Therefore, buyers cannot know whether they are the owners of the goods or the stadium is simply trading against them. Gesler discussed these issues during the annual conference of the Financial Sector Regulatory Authority held in Washington.
The interview also emphasized that the crypto market is driven by a number of platforms and developers, despite claims that they are fragmented. According to Gesler, these forums could work with the SEC to make regulations and disclosures to improve the current Industry vision.
It can help investors ensure that there is a real set of rules behind every activity. In addition, there will be strong opposition to fraud, fraud, and other illegal activities that may enter the market.
Gesler has promised that the SEC will continue to work on regulating the crypto sector. However he also emphasized that until the event, investors will remain insecure.
Recently, Vitalik Buterin of Ethereum reiterated that the industry needs to bring in measures to protect smallholder farmers. Although he did not go into implementation of the regulations, he referred to Singapore employment law to take a systematic approach to the crypto environment.