As concerns mount in the cryptocurrency industry over the recent actions of the United States Securities and Exchange Commission (SEC), its global market capitalization has recorded losses of over $40 billion in a single day.
Indeed, over the last 24 hours, the global crypto market cap has declined from $1.063 trillion to $1.02 trillion, which represents a $43 billion or 4.2% drop in one day, according to the latest CoinMarketCap data retrieved by Finbold on February 10.
Consequences of regulating by enforcement
The massive outflows from the crypto market cap have arrived after the crypto trading platform Kraken agreed to shut down its staking services in the U.S. and pay a $30 million fine to settle the charges with the SEC, which accused the crypto exchange of selling unregistered securities.
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Interestingly, SEC Commissioner Hester Pierce has publicly blasted her own agency over the actions against Kraken, arguing that “using enforcement actions to tell people what the law is in an emerging industry is not an efficient or fair way of regulating.” As she stated:
“Today, the SEC shut down Kraken’s staking program and counted it as a win for investors. I disagree and therefore dissent.”
Meanwhile, most cryptocurrencies on the market are struggling, including the flagship decentralized finance (DeFi) asset Bitcoin (BTC), the price of which has declined by 3.86% on the day, as well as the second largest crypto by market cap – Ethereum (ETH), which is writing down 5.38% loss on its daily chart.
At the same time, the recent declines can also be partially attributed to another recent blow to the crypto market in the form of LocalBitcoins, the peer-to-peer Bitcoin exchange, ending its services after over a decade in the business.
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