E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Housing sales in Jan-Jun at 9-year high in top 8 cities; sales see 60 per cent annual growth: Knight Frank

July 6, 2022

SOL Stuck in a Range, Breakout Inbound?

July 6, 2022

Bajaj Auto looks to sell Chetak from 75 locations in current fiscal

July 6, 2022
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
Facebook Twitter Instagram
E Amazings
You are at:Home»Crypto»Crypto Mom Hester Peirce Does Not Support Bailouts for Collapsing Digital Asset Companies
Crypto

Crypto Mom Hester Peirce Does Not Support Bailouts for Collapsing Digital Asset Companies

Paul EasterBy Paul EasterJune 22, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email



Despite her bullish defense of the crypto industry’s growth, Securities and Exchange Commission (SEC) commissioner Hester Peirce – aka “Crypto Mom ” – would never support bailing it out of a crisis. On Friday, she claimed that its lack of such a mechanism is actually a strength of the marketplace.

Letting Bad Companies Fail

In an interview with Forbes, Peirce clarified that the SEC has no authority to be a “systemic risk regulator,” in charge of determining what institutions require a government backstop. However, even if it were, she would support no such measures for the flurry of crypto platforms facing trouble today – especially not if they were irresponsibly over-leveraged.

“I don’t want to come in and say that we’re going to try to figure out a way to bail you out,” she said. “But even if we did, I would not want to use that authority, we really need to let these things play out.”

With crypto prices returning to late 2020-levels, multiple over-leveraged lending platforms and VC firms are desperately searching for liquidity to stay afloat. Firms like Celsius and Babel Finance, for instance, have been forced to disable user withdrawals due to market pullbacks and financial contagion.

BlockFi, too, has now accepted a $250 million loan from FTX, while VC firm Three Arrow Capital considers similar options.

As an SEC member, Peirce is paying attention to those companies that buckle under such stressful conditions, so they can “see how the market operates.” She believes the commission may be more likely to receive tips for handling these circumstances during the bear market.

Peirce has disagreed with chairman Gary Gensler on a number of topics, not least of which is the delayed approval of a Bitcoin spot ETF. However, when it comes to crypto lenders, she’s equally skeptical as he of some of their overpromising returns.

“When you have an attractive return, you need to be asking questions about its associated risks?” she said. “And if you’re not getting answers, then you need to think about whether you want to make that investment.”

The Lummis-Gillibrand Bill

Crypto mom showed cautious optimism over Senate odd-couple Lummis and Gillibrand’s landmark crypto legislation introduced earlier this month. For her, all that matters is that it provides regulatory clarity, even if not in the exact framework that she’s looking for.

The legislation would tilt the jurisdiction of the two largest cryptocurrencies towards the Commodities and Futures Trading Commission, rather than the SEC. Alone, Bitcoin and Ether comprise well over half of the entire digital asset market cap.

SPECIAL OFFER (Sponsored)

Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



Source link

Paul Easter

Related Posts

SOL Stuck in a Range, Breakout Inbound?

By Paul EasterJuly 6, 2022

Bitcoin Reclaimed $20K Following Extreme Volatility, AVAX Jumps 7% (Market Watch)

By Paul EasterJuly 6, 2022

CeDeFi Strategies for Premium Yields

By Paul EasterJuly 6, 2022

After Suspending Withdrawals, Voyager Digital Files for Chapter 11 Bankruptcy

By Paul EasterJuly 6, 2022
Add A Comment

Comments are closed.

Our Picks

Housing sales in Jan-Jun at 9-year high in top 8 cities; sales see 60 per cent annual growth: Knight Frank

By Paul EasterJuly 6, 2022

SOL Stuck in a Range, Breakout Inbound?

By Paul EasterJuly 6, 2022

Bajaj Auto looks to sell Chetak from 75 locations in current fiscal

By Paul EasterJuly 6, 2022
Recent Posts
  • Housing sales in Jan-Jun at 9-year high in top 8 cities; sales see 60 per cent annual growth: Knight Frank July 6, 2022
  • SOL Stuck in a Range, Breakout Inbound? July 6, 2022
  • Bajaj Auto looks to sell Chetak from 75 locations in current fiscal July 6, 2022
  • 3D Print Your Own Multi-Color Filament July 6, 2022
  • Bitcoin Reclaimed $20K Following Extreme Volatility, AVAX Jumps 7% (Market Watch) July 6, 2022
  • Stocks to buy: Sanjiv Bhasin picks Wipro, Tata Chemicals, Adani Ports, Coforge for gains today; Here’s why July 6, 2022
  • CeDeFi Strategies for Premium Yields July 6, 2022
Archives
  • July 2022
  • June 2022
Facebook Twitter Instagram Pinterest TikTok
  • Home
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.