A Secret Alliance to Destroy Crypto by Usurping CongressWild Elon Musk Ally Fans Rumor Has Wreaked Havoc with the Price of Bitcoin and Ethereum

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BitcoinBTC and Ethereum, the two largest cryptocurrencies by a considerable margin, tumbled wildly this week as sudden regulatory action rocks the crypto world (with further shocks expected).

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The price of bitcoin crashed to levels not seen since March this week following a devastating punch from the United States Securities and Exchange Commission (SEC) against first Binance, then CoinbaseCOIN, two of the largest crypto exchanges in the world, which led to a severe warning Coinbase.

Now David Sacks, a tech investor who is a close associate of billionaire Tesla and Twitter owner Elon Musk, has claimed without evidence that SEC Chairman Gary Gensler and influential U.S. Senator Elizabeth Warren have formed an “alliance.” to destroy crypto in the United States, compounding a huge bitcoin and crypto price crash.

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MORE MARKET MANIPULATION AND INSIDER TRADING FROM FORBES – Elon Musk and Tesla face a nightmarish new challengeBy Billy Bambrough Exchange Commission (SEC), and influential Senator Elizabeth Warren (D-MA) have been accused of forging an “alliance” against crypto amid a war that has wreaked havoc with the price of bitcoin and crypto.Getty Images

“The scuttlebut is that [Gensler] has an alliance with Elizabeth Warren, and rumor is she will make him Secretary of the Treasury if he essentially destroys crypto in the United States,” Sacks said on the All-In podcast, alongside fellow investors Jason Calacanis. , Chamath Palihapitiya and David Friedberg.

This week, the U.S. Securities and Exchange Commission (SEC) sent shockwaves through the crypto market by accusing Coinbase of operating illegally, expanding its crackdown on the industry after suing the biggest crypto platform. crypto trading world, Binance, accusing it of a series of violations that include mishandling user funds, inflating trading volume and circumventing regulations.

In April, Palihapitiya, speaking on the same podcast, said, “Crypto is dead in America,” correctly predicting regulators are coming for crypto companies like Coinbase following the bitcoin price crash and the crypto of 2022 that led to the implosion of major exchange FTX. .

“What Gensler and the SEC are saying is that it’s not legal to operate a crypto exchange in the United States,” Sacks said. “I believe Gensler is way beyond his authority to say something like that. It’s not for the Chairman of the SEC to say that Americans shouldn’t hold crypto.”

Earlier this year, Warren signaled that she was “building an anti-crypto army” as part of her re-election campaign, echoing a quote from a Politico profile.

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MORE FROM FORBES $100B Crash in Crypto Price Triggers Serious Coinbase Warning as Bitcoin and Ethereum CrashBy Billy Bambrough Ethereum price rally but stalled as regulators follow through on crackdown crypto promise.Forbes Digital Assets

Last week, U.S. lawmakers introduced a bill to Congress proposing an “operating framework” designed to provide regulatory clarity for the country’s bitcoin and crypto companies.

The new US Crypto Bill, after several attempts to pass crypto legislation in previous sessions, proposes that cryptocurrencies offered as part of an investment contract fall under the oversight of the SEC, while those that are considered commodities would be overseen by the Commodity Futures Trading Commission (CFTC).

“Everyone should understand that what the SEC is doing right now is basically usurping the authority of Congress,” Sacks said. “Congress should be the law. If Congress wants to ban crypto exchanges in the United States and prevent American citizens from owning crypto, let Congress do it. It shouldn’t be up to Gensler to do it. TO DO.”

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I am a journalist with significant experience covering technology, finance, economics and business worldwide. As founding editor of Verdict.co.uk, I reported on how technology is changing business, political trends and the latest cultures and lifestyles. I have covered the rise of bitcoin and cryptocurrency since 2012 and traced its emergence as a niche technology in the greatest threat to the established financial system the world has ever seen and new technology the more important since the Internet itself. I’ve worked and written for CityAM, the Financial Times, and the New Statesman, among others. Follow me on Twitter @billybambrough or email me at billyATbillybambrough.com. Disclosure: I occasionally hold a small amount of bitcoin and other cryptocurrencies.

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