Crypto markets fall due to the comments of the regulatory authorities

The SEC chairman and the incumbent head of the OCC dealt with crypto assets.

and continued their downward trend on Tuesday when the SEC chairman Gary Gensler and the head of the office of the auditor Michael HSU expressed concerns about the investment class.

Cryptoma markets Feel the pain

The cryptoma markets continue to fall, driven by a declining regulatory view.

Bitcoin fell shortly below $ 40,000 on Tuesday evening, testing decisive psychological support. Bitcoin has fallen by over 12% in the past seven days, but has recovered slightly since then and is around $ 42,200.

Ethereum has not developed better and has a decrease of 15%last week. The second largest cryptocurrency briefly reached low levels of $ 2,654 before recovering greatly. The price seems to have stabilized and is currently being traded at around $ 2,930.

The current on the markets was inspired yesterday by comments by the second chairman Gary Gensler. In an interview with the Washington Post, Gensler emphasized his conviction that many crypto-assets are to be classified as securities and thus fall into the responsibility of the Sec.

In relation to the current missing regulation of crypto-assets said Gensler:

"I really fear that we will continue to present these enforcement cases, but there will be a problem on trade and credit platforms, and frankly, if that happens, many people are injured."

Elsewhere, Michael HSU, the reigning head of the Office of the Compotroller, also expressed negative views of the crypto industry in a webcast with the Blockchain Association. HSU urged the audience and compared the decentralized financing in the crypto industry to the practices that triggered the 2008 financial crisis. "Crypto/Defi is on a way today that looks like CDs in the early 2000s," he said.

While Bärische Nachrichten dominated the first half of the week, there seems to be a light on the horizon for the cryptoma markets. Evergrande (OTC :), the Chinese real estate developer, whose debt crisis has covered the financial markets, seems to pay off interests for its loans with People’s Bank of China, which soothes the fear of paying the company.