Interest rates are so high that it seems unreal! US SEC Chairman calls for urgent regulation of crypto commodities.

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stated that crypto assets are "too good to be true," issuing a warning to investors. Meanwhile, the U.S. Treasury Department expressed that the recent turmoil in the cryptocurrency market highlights the urgent need to establish regulatory frameworks to mitigate the risks posed by digital assets.

US Treasury Department: Urgent Need for Cryptocurrency Regulatory Framework

In early May, the collapse of the cryptocurrency Terra (LUNA) and the stablecoin Terra USD (UST), as well as issues with cryptocurrency lending platforms, have triggered a sell-off wave, shaking the cryptocurrency market. The total market capitalization of the entire cryptocurrency market has shrunk by over 1 trillion US dollars since mid-April.

Officials from the US Treasury Department stated that the department does not monitor activities in the cryptocurrency market. The recent turmoil highlights the urgent need for regulatory guidance and expertise to address potential risks posed by digital assets. Therefore, the Treasury Department will consider congressional legislation to further address these risks.

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