SEC Chair’s Speech Put Pressure on Bitcoin and Ripple (XRP), But Jack Dorsey Backed the Market

SEC Chair's Speech Put Pressure on Bitcoin (BTC) and Ripple (XRP), But Jack Dorsey Backed the Market

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The statement by the head of SEC Gary Gensler influenced the quotes of the two big-cap cryptocurrencies, BTС and XRP. But at the same time, bitcoin got support from Jack Dorsey.

In a video speech at the Digital Asset Compliance & Market Integrity Summit (DACOM) in New York, the SEC chairman described bitcoin as a threat to the American banking system. About 40 years ago, US banks took action to combat money laundering. Now bitcoin has the potential to undermine this strong system. Therefore, the SEC will oppose such competition, according to Gensler.

Earlier, speaking in the US Congress, the head of the SEC said that the Commission has no plans to ban cryptocurrencies, it will use other approaches. One approach is to regulate all cryptocurrency-related products. So, for example, platforms for spot bitcoin ETFs have to register and solve the problem of holding an asset, as well as provide transparency and protect the interests of investors, the chairman of the SEC said. Gensler recommends doing the same to cryptocurrency exchanges. He stated that “the SEC is ready to cooperate and open a discussion on different topics such as token storage, etc.”

The crypto community also expected Gensler to say something new about the SEC vs Ripple lawsuit. Moreover, at this very time, information appeared that the XRP nodes stopped synchronizing, and the failure lasted 5 hours. Gensler said nothing about XRP, but spoke positively about the technology in general, in his discussion with Jay Clayton, his predecessor as chairman of the SEC. Gensler noted:

– I think that the technology itself has been a catalyst for change around the globe in the payment business. Central banks and the private sector have started to think about payment systems a little bit differently.

As for XRP, the network blackout triggered a drop in the price of the cryptocurrency and may even have created a “nasty bear trap”, analysts say. The process was accelerated by the info of the WhaleAlert service that the whale transferred XRP in the amount of $ 40.4 million to the Binance exchange for sale.

Unexpected support for the market came from Jack Dorsey after he left Twitter. Square, Dorsey’s second company, is renamed Block. It is now clear that the Twitter founder has really focused on supporting the blockchain and bitcoin. Bitcoin entered the green zone again, though for a short time.