[Bitcoin Now] Despite US SEC's Regulatory Signals? ... Rises to 56 Million Won Range

Gary Gensler SEC Chairman "Even Coinbase Is Not Registered with Regulators"
Fidelity Emphasizes the Need to Launch Bitcoin ETF to SEC

[Image source=AP Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has risen to the 56 million KRW range. Although Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), mentioned the cryptocurrency exchange Coinbase and emphasized the need for regulation, the market reaction has been positive instead.

According to the Wall Street Journal (WSJ) on the 14th (local time), Chairman Gensler appeared before the U.S. Senate Committee on Banking, Housing, and Urban Affairs and said, “There is currently no proper regulation for cryptocurrency exchanges,” and “We will strengthen cryptocurrency regulations further.” He also hinted at regulation by specifically mentioning Coinbase. He emphasized, “Coinbase, the largest cryptocurrency exchange in the U.S., trades cryptocurrencies that can be considered securities but is not registered with regulatory agencies,” and “More support is needed for the SEC.”

Nevertheless, Bitcoin rose. According to the domestic cryptocurrency exchange Upbit, as of 2:44 PM on the 15th, Bitcoin recorded 56.27 million KRW, down 0.52% compared to the previous day. Bitcoin, which was 54 million KRW the day before, rose to 57.12 million KRW at 9:46 AM that day. It then fell back to the 56 million KRW range, showing a brief pause.

Recently, the SEC has been sharpening its stance against Coinbase. According to U.S. economic media Bloomberg on the 8th, the SEC warned that it would file a lawsuit if Coinbase launched the cryptocurrency lending product “Lend.” Lend is a product that guarantees an annual yield of 4% when USD Coin is deposited to enable cryptocurrency lending through Coinbase. USD Coin is a stablecoin traded on Coinbase, backed by fiat currency, and has low volatility.

In response to the SEC’s warning, Coinbase postponed the launch of Lend to next month but expressed strong dissatisfaction. Brian Armstrong, CEO of Coinbase, opposed the SEC on Twitter, stating, “Lend is simply a loan, not an investment contract or a note.”

Meanwhile, the U.S. giant asset management firm Fidelity has requested SEC approval for a Bitcoin exchange-traded fund (ETF). According to the U.S. cryptocurrency specialized media Coindesk on the 14th, Fidelity held a private meeting with the SEC on the 8th. It is known that Fidelity emphasized at this meeting that the launch of the Bitcoin ETF should no longer be delayed. Expectations for the Bitcoin ETF launch increased after Chairman Gensler, who taught blockchain classes at MIT in April, took office, but there is still no news.