Fakoyejo OlalekanThe United States government have warned that investment in Bitcoin, Ethereum and other cryptocurrency are risky to investors, as it proceeds with plans to regulate the digital asset market.
Recall that between January to September 19, the cryptocurrency investors had lost over $1.23 billion in investment value, with the digital asset market depreciating in value by -56.4% year-to-date, from $2.18 trillion to $952.59 billion.
Amid this crash, the US government directed the Securities and Exchange Commission (SEC), as well as the Commodity Futures Trading Commission (CFTC) to tighten regulation over cryptocurrencies by issuing new rules.
President Joe Biden’s administration stated that cryptocurrency poses meaningful risks to consumers, investors, and businesses due to market manipulation, frauds, thefts, scams, and operational failures.
Over the weekend, the administration said, “Digital assets pose meaningful risks for consumers, investors, and businesses.” The government added that there are, “frequent instances of operational failures, market manipulation, frauds, thefts, and scams.”
Treasury secretary, Janet Yellen, stated, “If these risks are mitigated, digital assets and other emerging technologies could offer significant opportunities.” Forbes quoted Coindesk report.
In a Reuters report, she explained that, “Innovation is one of the hallmarks of a vibrant financial system and economy, but as we’ve painfully learned from history, innovation without adequate regulation can result in significant disruptions and harm to the financial system and individuals.”
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