Community Rips SEC warning of new crypto risks amid TradFi crisis
- Crypto extremists attack the SEC for bias in regulating the crypto industry.
- Analyst Ben Armstrong sarcastically says, “Crypto is bad, but Ponzi banking is good.”
- Other SEC Twitter users are asking why gambling is acceptable but not in cryptocurrency.
The crypto community is having a field day blaming the US Securities and Exchange Commission (SEC) for being biased in regulating the crypto industry and the traditional financial system.
Cryptocurrency enthusiasts expressed their reservations about the regulator after a warning letter where the SEC claimed that crypto assets constituted a risky investment venture. “Investments in crypto-asset securities can be exceptionally volatile and speculative,” the regulator wrote in a post on Thursday.
The SEC has also argued that platforms where investors buy, sell, borrow or lend cryptocurrencies may lack basic protections. Given the current crisis in the US banking system caused by the collapse of two banks controlling more than $300 billion in client assets, a cryptocurrency influencer asked the Securities and Exchange Commission, “Where is the warning that banks don’t actually exist?” [our] money?”
“Cryptocurrency sucks,” Ben Armstrong, author of Catching Up To Crypto, quipped. [but] The banking system is a good Ponzi scheme.”
Where is the warning that the banks don’t actually have your money? Remember this: Crypto badPonzi banking system for a good system https://t.co/YXcLs8mQtd
– Ben Armstrong (@Bitboy_Crypto) March 24, 2023
Also, one Twitter user questioned why it was legal to gamble on any state-run lottery, casino, or games offered in convenience stores, but making an informed decision about buying cryptocurrency was problematic.
Furthermore, cryptocurrency enthusiasts have argued against the SEC using the fact that the US government recently printed $300 billion out of thin air to bail out banks — a move that experts believe could push the economy into hyperinflation.
Binance CEO Changpeng Zhao mocked US financial authorities for anti-crypto. “Volatile,” he said, “but she didn’t need a bailout.”
The Community Rips SEC’s new crypto risk warning amid the TradFi crisis appeared for the first time in Coin.