Hearing of the SEC's incoming chairman: Eradicate cryptocurrency fraud and conduct a comprehensive review of the GameStop short squeeze chaos

Source: Cailianshe

Author: Wu Bin

Original title: "SEC Chairman-designate hearing: eradicating cryptocurrency fraud and comprehensively reviewing the GameStop short squeeze chaos"

On Tuesday, Eastern Time, the U.S. Senate held a hearing for Biden's nominees for Chairman of the Securities and Exchange Commission (SEC) and Director of the Consumer Financial Protection Bureau (CFPB). Related remarks suggested that Wall Street may face strong regulation in the next four years.

At the hearing, SEC Chairman candidate Gary Gensler said that the SEC would face up to the challenge of eradicating cryptocurrency fraud and manipulation. The related remarks dragged Bitcoin down below $48,000.

Gessler also said that cryptocurrencies are a "catalyst for change" that brings new ideas to payments and financial inclusion, but also raises concerns about investor protection. If elected, he will work to promote innovation while also ensuring investor protection.

In addition, Gessler also promised a comprehensive review of the issues behind the GameStop retail short squeeze, including whether retail trading practices can best serve customers. "Technology is changing, markets are changing, and we should always evaluate new market approaches."

Gessler, the former chairman of the Commodity Futures Trading Commission (CFTC), implemented new swaps trading rules formulated after the financial crisis in 2010, thus establishing an image as a "hardliner" who dared to directly challenge Wall Street interests.

Another key figure, CFPB candidate Rohit Chopra, said he is considering strengthening supervision of technology companies. If he is finally elected, he will focus on the actions of large technology companies to enter the financial services field and study the impact on consumer privacy.

Chopra is currently a commissioner of the Federal Trade Commission (FTC), and is a figure that the market is wary of. After the 2008 financial crisis, Chopra helped establish the CFPB and served as the first student loan ombudsman. Later, while in office at the FTC, Chopra called for stricter rules for user privacy and competition related to large technology companies, and demanded stricter enforcement penalties.