The United States Securities and Exchange Commission is looking to cooperate with Congress and other regulators to increase its oversight of cryptocurrency exchanges.
Gary Gensler, the newly appointed chairman of the SEC, said that the commission is looking forward to working with fellow regulators and Congress to fill gaps in investor protection in crypto markets.
The official announced the plans at a Wednesday hearing before the Financial Services and General Government subcommittee of the House of Representatives.
Gensler said that the SEC needs to provide similar protections for crypto exchanges that an investor would get on the New York Stock Exchange or Nasdaq:
“If you placed an order on an app, and you said, ‘Alright, I want to buy a stock,’ there are rules that protect you that somebody won’t use your order and get ahead of you. […] So, it’s trying to bring similar protection to the exchanges where you trade crypto assets as you might expect at the New York Stock Exchange or Nasdaq.”
The new SEC head also outlined some of the challenges to regulating the cryptocurrency industry, stating that the SEC is “under-resourced” in financial terms when compared with some of the big players in the industry. “We only spend about 16% or 17% of our budget, about $325 million a year, on technology, which is less than probably some large firms spend in a month. Some of them even spend that much in two weeks,” he noted.
Gensler previously suggested that the SEC should be cooperating with Congress to properly address crypto exchange regulation in a market volatility-related hearing of the House Financial Services Committee in early May.
Last week, Michael Hsu, the new head of the Office of the Comptroller of the Currency, announced that the agency has been in talks with the U.S. Federal Reserve and the Federal Deposit Insurance Corporation about setting up an “interagency policy sprint team” focused exclusively on crypto.
eNaira: Buhari, Emefiele Launch eNaira at State House Abuja
President Muhammadu Buhari and the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele on Monday, October 25, 2021 officially launched eNaira, Nigeria’s Central Bank Digital Currency (CBDC) in state house Abuja.
Nigeria is now one of the few countries to have launched digital currency ahead of nations like the United States, United Kingdom, etc.
The CBN believed eNaira will help plug loopholes in the financial system, curb illicit financial flows, strengthen security, improve data collection and monitoring.
Speaking on why he approved CBN’s decision to launch a digital currency, the president explained that his approval was “underpinned by the fact that the CBN has been a leading innovator in the form of money they produce, and in the payment services they deploy for efficient transactions.”
“They have invested heavily in creating a Payment System that is ranked in the top ten in the world and certainly the best in Africa,” the president said at the event in Abuja.
“This payment system now provides high‐value and time‐critical payment services to financial institutions, and ultimately serves as the backbone for every electronic payment in Nigeria.”
President Buhari further said, “estimate suggests the adoption of new CBN digital currency is estimated to increase Nigeria’s GDP by $29 billion over the next 10 years.
“We have become the first country in Africa and one of the first in the world to introduce a digital currency to our citizens.”
Africa’s largest economy has now launched two mobile applications for eNaira – eNaira speed wallet and eNaira merchant wallet – on Google playstore and Apple store to facilitate adoption and usage.
These applications tell eNaira potential users to“Get Ready With Your Accurate BVN Data For Your Hitch-Free Enrolment.
“To sign-up on the eNaira speed wallet, you would be required to input the following details exactly as captured during your BVN enrollment.
“First Name, Last Name, Date of Birth, State of Origin, and Email.
“Your Banks are waiting to assist you in validating and updating your BVN details to ensure seamless enrolment to the eNaira Platform.”
World’s Leading Cryptos Close to Reaching New Record Valuations, Dogecoin Still 65% Below All-Time High in May
The last few weeks have seen impressive growth in the global crypto market after a rocky September and another crypto price drop, following a ban on cryptocurrency transactions and mining from China’s central bank, which declared all digital coins illegal in the country.
Since the beginning of October, some of the world’s leading digital coins not only bounced back but jumped close to reaching new record valuations. However, that’s not the case with Dogecoin, which still lags in price and market cap growth.
According to data presented by BlockArabia, the market cap of the meme-inspired digital coin hit $32.3bn last week, or 65% below its all-time high in May.
Far Below Record Valuation Despite Impressive YTD Growth
The original meme coin came a long way since its beginnings in 2013 and climbed high on the list of the most popular crypto investments in 2021. What started as a joke between the two IBM engineers became the world’s tenth-largest cryptocurrency, drawing a lot of intention in the crypto space, especially in the first half of the year.
In the five months of 2021, Dogecoin’s price soared by over 14,200% to $0.73, driving its market cap to an all-time high of $93.5bn in May. However, after the crypto price crash, this figure stumbled to $35.7bn in just three weeks.
In the first days of June, the combined value of all DOGE coins jumped to around $54bn and then plunged to $22.5 by the third week of July. After dynamic August and September, the market cap of the meme-inspired crypto rose to $32.3bn last week, a staggering 5,200% YTD increase, still $61bn less than its all-time high from May.
In comparison, Bitcoin’s market cap hit $1.18 last week, only 1.6% below its all-time high the same month. Ethereum and Cardano witnessed similar growth in this period, with their market caps only 2% and 3.7% below record valuations.
Monthly Trading Volume Almost Halved to $65.6B
Besides becoming one of the most popular cryptos to own in 2021, Dogecoin was also the second fastest-growing digital coin in the crypto space this year, behind Solana. However, its trading activity dropped significantly in the second half of the year.
According to CoinMarketCap data, Dogecoin’s monthly trading volume amounted to around $260bn in June. Although this figure dropped by 25% to $194.4bn in July, the meme-inspired digital coin was still the fourth most-traded crypto that month.
In August, Dogecoin dropped to the nineteenth place of the most-traded cryptos, with a monthly trading volume of $43bn or 4.5 times less than a month before.
Statistics show that on October 22, its 30-day trading volume stood at around $65bn, almost half the value from July.
Central Bank of Nigeria Says eNaira is Finally Ready for Launch
The launching was initially slated for October 1, Nigeria’s 61st independence anniversary. However, the launching was postponed to address some hiccups, including a lawsuit filed against the central bank by a private firm that first registered the name eNaira with the Corporate Affair Commission (CAC).
The CBN had claimed that instead of putting its entire focus on launching the eNaira on October 1, 2021, it commenced work on the design and architecture of the digital currency to mitigate risks perceived during its initial launching.
According to the apex bank, when the E-Naira is finally launched today, Nigeria would be one of the first countries to have a CBDC. While the CBDC is not meant to replace cash but to co-exist with it. The launching would make Nigeria the fifth country to launch a centralized national electronic currency, joining the likes of Cambodia, Sweden, South Korea and the Bahamas. Ahead of the United States, China, the United Kingdom, and others considering launching their own digital currency.
Bitt Inc., a Barbados-based financial technology business that uses blockchain and distributed ledger technology to enable safe peer-to-peer transactions, was selected as the technical partner for the eNaira project.
The CBN announced plans to launch the E-Naira four months after banning cryptocurrency transactions in the country after claiming the unregulated cryptocurrency space is aiding fraud and unregulated capital outflows that exposed the Nigerian public to enormous damages and risks.
The central bank, however, believed that the eNaira launching would help deepen financial inclusion in Nigeria, as it is targeted towards both the banked and unbanked segments of the population. Data from the Enhancing Financial Inclusion and Access (EFInA) shows that only 64 percent of Nigerian adults were in the financial system in 2020, way below the 80 percent target of the CBN.
While experts have noted the potential benefits of the E-Naira, they also urged the CBN to carry out more sensitization as the digital currency could be easily accessed by hackers to defraud innocent people if a strong security framework is not put in place.
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