It’s Wednesday, and cryptocurrency prices are dropping again. As of 10:30AM ET, here’s how prices are looking at several of the biggest names in cryptocurrency:
- Industry leadership Bitcoin (CRYPTO: BTC) It is down 0.8% in the past 24 hours, according to data from Coindesk.
- Ethereum (CRYPTO: ETH) It is from 2.5%.
- XRP (CRYPTO: XRP)The token, closely related to Ripple, is down 3%.
- And Dogecoin (CRYPTO: DOGE) It suffers more than anything, down 4.1%.
Earlier this month, new Securities and Exchange Commission Chairman Gary Gensler sparked panic among crypto investors when he linked cryptocurrency trading to “fraud” in an interview with Bloomberg, urging Congress to create a “robust oversight system.” for the cryptocurrency market. Today, the woman who replaced Gensler as chair of the Securities and Exchange Commission — now Secretary of the Treasury Janet Yellen — was moved by Washington Post Echoing Gensler’s concerns.
Cryptocurrency “mostly [used] For illicit financing,” Yellen said, adding that it was a “very inefficient way to transact,” a “very speculative asset”—oh, and “the amount of energy expended in processing these transactions is staggering,” to boot!
To put the icing on the cake, Yellen has apparently also advocated the creation of a “central bank digital currency” to compete with Bitcoin and other independently developed cryptocurrencies — an idea that has also been brought up by China.
Collect everything, and Mail He notes that many crypto enthusiasts now fear that “Yelen wants to wipe out the industry” — possibly to make way for a government-made national digital currency. Personally, I think this sounds a bit ambitious, and I’m not convinced the government could pull it off even if they wanted to. However, when combined with previous comments from elsewhere in government — specifically, Minneapolis Fed President Neil Kashkari’s accusation that non-state cryptocurrencies are “95% fraud, hype, noise, and confusion” — there is mounting evidence that momentum is building. For some serious regulatory effort to rein in cryptocurrency trading in the US
Until we get a better idea of what the government is planning to do, specifically, I’ll be excited for more volatility in the cryptocurrency market in the coming weeks.
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