Cryptocurrencies enjoyed relief on Wednesday morning in Asia after Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), was questioned on his regulatory approach during a congressional hearing. Gensler is an advocate of introducing tight regulations on crypto markets and major crypto platforms, which cheered the crypto industry but sparked a backlash from some, who feared these regulations would stifle innovation.

During the hearing, Gensler was asked why he had launched several lawsuits and hefty fines against crypto platforms earlier this year. Gensler defended his stance and said the SEC had a duty to protect investors who he said are vulnerable to fraud when investing in crypto markets.

Encouraged by the pushback from the congressional hearing, Bitcoin jumped back above US$30,000 and Ether climbed higher on Wednesday morning in Asia. Nine out of the top 10 non-stable coins enjoyed upside momentum, with Polkadot leading the pack, according to crypto data tracker CoinGecko.

The ecosystem of cryptocurrency continues to be the subject of discussion in financial markets, with its offerings often viewed with both cautious optimism and scepticism. While its price has rallied, cryptocurrencies face regulation issues due to their potential use in money laundering and other illegal activities. Furthermore, there is a concern over the amount of energy they require to be mined, while their true value as an asset remains debatable.

Cryptocurrencies enjoyed a boost on Wednesday morning as Gary Gensler - the chair of the U.S. Securities and Exchange Commission (SEC) - faced scrutiny over his regulatory approach during a congressional hearing. Gensler's stance against crypto platforms has stirred mixed reactions, with some expressing concern that such stringent regulations would negatively impact the innovation in the crypto industry.

Despite the current regulatory uncertainties, nine out of the top 10 non-stable coins posted gains with Polkadot leading the field. These gains show that the price of cryptocurrencies is still heavily dependent on the current news and events in the market, as well as its adoption as a platform for commerce and trading.

Cryptocurrencies have become increasingly popular in recent months due to its use in transacting digital assets and its decentralized nature. However, crypto' lack of intrinsic value and the potential for illegal use mean that it still has to battle with some investor scepticism.

This showed again in Wednesday morning Asia session, when while cryptocurrencies went up, U.S. equity futures traded lower. Ultimately, cryptocurrency can only enjoy a sustained uptrend if investors are able to firmly believe in its long-term potential, with the SEC chair's regulations playing a crucial role.



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