[Bitcoin Now] SEC Chairman Also Signals Strong Regulation... Staying Around 44 Million Won

No Mention of Bitcoin ETF
Some Point Out Tax Hikes Pose a Greater Threat Than SEC Chair's Regulatory Hints

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin remained in the 44 million KRW range. Recently, as the U.S. political sphere has been emphasizing cryptocurrency market regulations day after day, Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), also reinforced calls for regulation.

According to the domestic cryptocurrency exchange Upbit, as of 3:28 PM on the 4th, Bitcoin recorded 44.37 million KRW, down 1.33% compared to the previous day. It had risen to 49.47 million KRW on the 1st but has been declining continuously since then.

It is interpreted that Chairman Gensler’s remarks hinting at regulation of the cryptocurrency market had an adverse effect. On the 3rd (local time), according to U.S. economic media CNBC, Chairman Gensler said at the Aspen Security Forum, “Some cryptocurrency-related regulations are well made, but there are still regulatory gaps,” and “The current cryptocurrency market does not protect investors, much like the Wild West era.” He also expressed that the SEC would exercise its authority to the fullest to oversee the cryptocurrency market and that additional approval from Congress would be necessary to do so. On that day, he did not mention Bitcoin exchange-traded funds (ETFs).

Recently, the U.S. political sphere has been pointing out the need for cryptocurrency market regulation day after day. Senator Elizabeth Warren, a Democrat, was the starting point. On the 27th of last month, she sent a letter to U.S. Treasury Secretary Janet Yellen stating, “As demand for cryptocurrencies increases, investors and the existing financial system are at risk,” and “The Financial Stability Oversight Council (FSOC) must promptly take regulatory action.” Additionally, Democratic Representative Don Beyer introduced a bill that holds the SEC responsible for securities related to cryptocurrencies and the Commodity Futures Trading Commission (CFTC) responsible for cryptocurrency regulation. The bill also includes provisions granting the Treasury Department the authority to ban or authorize stablecoins. Stablecoins refer to cryptocurrencies that are relatively stable in value as they are pegged to fiat currencies.

Meanwhile, there are also opinions that tax increases pose a more immediate threat to the cryptocurrency market than SEC regulations. Earlier, on the 1st, the U.S. Senate agreed to raise taxes related to cryptocurrencies to fund a $1.2 trillion infrastructure investment plan (approximately 1,372.56 trillion KRW). The revenue that can be raised through taxation is about $28 billion. Regarding this, on the 3rd, U.S. investment media Barron's argued, “According to the infrastructure bill, the definition of ‘broker’ (which can be interpreted to include decentralized and P2P exchanges) has been expanded to include cryptocurrency miners, making them subject to taxation,” and “The infrastructure investment plan is more threatening to the cryptocurrency industry than Chairman Gensler’s pressure.” Republican Senator Pat Toomey announced plans to introduce amendments to clarify the scope of taxation under this bill.

This content was produced with the assistance of AI translation services.