Coinbase Stock Plummets...Back to Listing Reference Price Level
[Asia Economy New York=Special Correspondent Baek Jong-min] The U.S. Securities and Exchange Commission (SEC) has called for the need to regulate cryptocurrency exchanges.
Gary Gensler, SEC Chairman, appeared at the House Financial Services Committee hearing on the 6th (local time) and said, "The $2 trillion cryptocurrency market can gain greater benefits through investor protection," urging lawmakers to develop measures for the SEC to directly regulate cryptocurrency exchanges.
Chairman Gensler expressed concern that "because there is no regulatory agency overseeing cryptocurrency exchanges, investor protection against fraud or manipulation is not being ensured," emphasizing that only Congress can take regulatory action.
He predicted that if cryptocurrency exchanges are regulated by the SEC or the Commodity Futures Trading Commission (CFTC), investor confidence would increase.
Chairman Gensler is a cryptocurrency expert. Before assuming the SEC chairmanship, he taught fintech and cryptocurrency at the Massachusetts Institute of Technology (MIT) Sloan School of Management.
Accordingly, expectations grew within the cryptocurrency industry that the SEC would approve the first-ever Bitcoin investment exchange-traded fund (ETF) after Gensler took office. However, last month, the SEC postponed the review of the Bitcoin ETF approval until June. The SEC stated that it is appropriate to take more time to review the Bitcoin ETF approval.
Gensler's remarks caused the stock price of Coinbase, the largest cryptocurrency exchange in the U.S., to fall to its lowest level since its Nasdaq listing last month.
Coinbase's stock price plunged by as much as 8% during the day, falling to the Nasdaq market reference price of $250. Coinbase's stock rose to $429 on its first day of listing but has since struggled to maintain its strength.
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