Chair of the United States Securities and Exchange Commission (SEC), Gary Gensler, commented on the recent volatility in the cryptocurrencies on Thursday, stressing that «crypto companies have been warned,» and that investors need better protection «in this space.»
«When you mix together a bunch of customer money and borrowing against it, investors get hurt,» the SEC chair said in an interview with CNBC. «This is a very interconnected world in crypto with a few concentrated players. When markets turned on them, it appears that a lot of customers lost money,» he added.
Since the beginning of the week, cryptocurrencies have suffered large losses as a result of the turmoil caused by the potential merger between Binance and FTX. However, after reviewing its organizational structure and financial records, Binance later declared it would no longer proceed with the transaction.