Updated 27 Oct, 2021

Bitcoin Slides Below $60K As SEC Chair Recommits To Investor Protection

A hand holding an umbrella with a mel figure running towards Bitcoin and an arrow ricocheting against umbrella on a purple background -BTC Slides Below $60K as SEC Chair Recommits to Investor Protection


Key Takeaways:

  • Bitcoin price drops under $60,000 on Wednesday after trading at $67,000 a week ago
  • Gary Gensler, head of the SEC, is still concerned over investor protection in crypto

Bitcoin Dips Below $60,000 on Wednesday

A sudden price dip rocked the leading cryptocurrency early on Wednesday. While the reason was not clear, the entire crypto market declined with bitcoin down about 6% to levels below $60,000 per coin.

However, even after bitcoin has eased from its all-time highs, crypto proponents believe the adoption cycle will continue to accelerate.

SEC Chair Gensler Remains Committed to Crypto Regulations

Meanwhile, Securities and Exchange Commission Chairman Gary Gensler reiterated his support for investor protection over the fast-developing cryptocurrency market. Mr. Gensler delivered fresh remarks on bitcoin and crypto assets on Monday.

Speaking with Yahoo Finance, the SEC Chairman said he is still concerned about the lack of regulatory structures over crypto. Moreover, he remains committed to providing protection for crypto investors even after the big success of Bitcoin ETFs.

“These markets, trade largely around the globe, 24 hours a day, seven days a week,” Mr. Gensler said.  He also noted that crypto markets do not have the same protection levels like those of the stock market.

“It’s a matter of bringing as much of this space within the investor protection remit,” Mr. Gensler highlighted. He also acknowledged the fast growth of crypto which is now worth over $2.5tn.

Crypto Circles Confident Regulations Will be Friendly

Gary Gensler’s comments on crypto eased investor concerns that regulations could hurt the stellar performance of digital assets. Moreover, as US financial watchdogs are hammering out guardrails around bitcoin and other tokens, crypto backers pile into the market.

That said, the emerging crypto industry is confident regulators will embrace the relatively new asset class. On that note, Mr. Gensler also mentioned the recent launch of two Bitcoin futures ETF. Last week, his agency, the SEC, gave the green light to the ProShares Bitcoin Strategy fund and the Valkyrie Bitcoin Strategy fund.

Until regulatory frameworks over bitcoin arrive, the SEC Chair stressed, a spot Bitcoin ETF would most likely not be approved. A spot Bitcoin ETF would offer a direct purchase of Bitcoin. Presently, the Bitcoin ETFs on Wall Street are trading bitcoin futures, and not actual bitcoin.

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