Bitcoin and Ether drop as SEC Gensler says crypto firms are running out of time to comply with securities laws

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Bitcoin fell below US$17,000 in Thursday morning trading in Asia. The other top 10 non-stable cryptocurrencies by market cap also fell after U.S. Securities and Exchange Commission Chairman Gary Gensler said the crypto industry was running out of time to comply with laws. on securities. He spoke Wednesday in an interview with Yahoo Finance.

See Related Article: SECs Gensler Says Proof-of-Stake Cryptocurrencies Can Be Securities

Fast facts

Bitcoin fell 1.4% to US$16,847 in the 24 hours to 8am in Hong Kong, while ether fell 3.1% to trade at US$1,232 according to CoinMarketCap .

Memecoin leader Dogecoin recorded the biggest losses on the CoinMarketCaps list, dropping 4.4% to $0.095. Polkadot fell 3.7% to US$5.30. Litecoin also fell 3.7% to trade at US$76.96.

Gensler said his agency has enough authority to start holding digital asset firms accountable for securities regulation.

Gensler said crypto exchanges and lending platforms must comply with these regulations. They can do it the right way, working with the SEC, or we can continue down a path with more enforcement, and I have to say the leads are getting shorter, he said.

Gensler said many crypto firms operate co-ed platforms offering loans, exchanges, hedge funds, etc., and such practices will need to stop.

He did not specifically address the collapse of Bahamas-based crypto exchange FTX.com. It has been alleged that FTX used funds from customers of its exchange to trade crypto and make investments through its affiliated brokerage firm Alameda Research.

Gensler said in September that any proof-of-stake cryptocurrency, such as the $150 billion Ethereum network, should be considered a security.

US stocks ended mostly lower on Wednesday. The Nasdaq Composite Index lost 0.5% and the S&P 500 Index ended down 0.2% for its fifth straight day of losses. The Dow Jones Industrial Average was little changed.

Investors see a recent string of bullish economic indicators at odds with comments by US Federal Reserve Chairman Jerome Powell last week when he said the central bank could begin to slow the pace of rate hikes interest rate to slow inflation.

The activity of the American services industry stood at 56.5% in November, according to the monthly survey of the Institute for Supply Management released Monday. A reading of 50% or more shows the economy is growing, while 55% is considered very strong. The US jobs report released on Friday showed the economy added 263,000 jobs in November, more than the 200,000 expected.

The Fed has been raising interest rates since March in an attempt to slow inflation from near zero to a 15-year high of 3.75% to 4%, and has signaled that rates could eventually top 5 %. The Fed has said it wants inflation within a 2% target range. The consumer price index showed inflation was 7.7% in October, down from 8.2% in September.

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