Crypto investors in a slump due to unwarranted activities by Crypto firms.
Ever since the market crash occurred, the crypto sphere has just found ways to downgrade its level. Whether it is the plunge of stable coins, the loss of bitcoins value by 70%, the fraudulent activities that occur in the market all have contributed for the market’s slump to prolong.
However, many of the cryptocurrency institutions have resorted to suspending essential activities like withdrawals, trading and deposits and have also laid-off a margin of their work force to counter the market situation. But, the investors and users of such institutions are in major slump due to these unwarranted activities.
Some cases of crypto companies suspending their activities are of Voyager Digital and Celsius. From the outside, it looks as though the company have scammed the investors off of their holdings and enjoying the benefits.
U.S Senator comments on the companies resorting to such harsh policies.
The senator of US, Elizabeth Warren claimed that, “Too many cryptocurrency businesses have been successful in defrauding clients, leaving regular investors carrying the bag while insiders flee with their money.”
The senator went on to give her views about the issue and added necessary changes that SEC needs to enforce to make the crypto institutions more accountable and more responsible. She added that, SEC needs to up their game and make stringent laws to regulate the crypto market. The protection of consumers investment and the financial viability of the investors should be the primary focus of SEC, she added.
Senator has been keenly observing the crypto market place. She has become aware of the market nuances and believes that the companies are always on the look out to scam the investors. It is believed that she is also consistently adding more pressure on Gensler, Chairman of SEC to up their game.
The Chairman, has previously been criticized for taking the enforcement-centric approach to crypto regulation. Under Gensler, the securities regulator announced in May that it would practically increase the size of its crypto team under its enforcement division.
Writer’s Analysis.
From the current market situation, it is quite evident that, investors are the ones who are suffering severely. The sad part is that, the investors are not even given an explanation for the loss of their holdings by the crypto institutions. I strongly believe that the Senator’s view to protect the customer is key for the market and the regulatory bodies have to set up and frame guidelines to protect them and make them feel secure about their holdings.
