Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

0:00
0:00

Crypto billionaire urges clarity on industry regulation

Bitcoin Foundation chair reacts to lawsuit targeting crypto exchange Gemini

Bitcoin Foundation Chairman Brock Pierce argued on Thursday that there is a need for clarity as to which agency should regulate the cryptocurrency industry.

Pierce noted on "Mornings with Maria" that "one of the biggest concerns in this space is security vulnerability" and noted that "we are upgrading the insecure infrastructure that comprises the Internet today."

"Crypto is at the forefront of experiencing all of those pains, but as a result of that we’re going to live in a more secure future," Pierce said.

The crypto billionaire provided the insight reacting to a lawsuit against cryptocurrency exchange Gemini, following the February theft of $36 million of crypto assets in Gemini's custody belonging to retirement accounts, a news release stated.

IRA Financial, a company that provides services for self-directed retirement and pension funds, is suing Gemini, which is owned by the Winklevoss twins Cameron and Tyler, over the company’s alleged failure to prevent the hack.

IRA Financial Trust vows to use the proceeds from the lawsuit to reimburse IRA Financial customers impacted by hack, the news release stated.

The lawsuit alleges that Gemini did not have proper safeguards in place to protect the crypto assets of customers and claims that the exchange acted too slowly to prevent more money from being stolen after IRA notified Gemini.

When reached for comment, a Gemini spokesperson told Fox News Digital that "IRA Financial was hacked and is trying to deflect blame on Gemini by filing this lawsuit."

"This is not a Gemini issue and no Gemini systems were compromised," the spokesperson continued. "While we regret that some of their customers had this experience, this incident starts and stops with IRA Financial."

Pierce stressed on Thursday that there have "clearly" been "calls for increased regulation" and recent events have only further highlighted the need for "sensible regulation."

Along with the stock market, bitcoin has experienced a lot of volatility in recent weeks.


As of Thursday morning, the bitcoin was trading around the $30,000 level, down from its all-time high of over $68,000 reached in November 2021.

The crypto is down more than 34% year-to-date.

Bitcoin and other cryptocurrencies have had some rough weeks in anticipation of and following the half-point interest rate hike by the Federal Reserve.

It was the second of several anticipated increases this year as the central bank seeks to combat soaring inflation, which is at a high not seen in four decades.

The expectation now is that the Fed will take aggressive action to try and curb inflation, which has reduced investor appetite to hold assets perceived as higher risk.

Adding to more fears of volatility in the crypto market was the decoupling of the TerraUSD, a stablecoin whose value was tied to $1 last month. The world’s largest stablecoin by market cap, tether, also briefly edged down from its $1 peg.

Stablecoins are digital currencies with values that are pegged to traditional assets, like the dollar, another currency or gold. Its correspondence with the dollar is what, in theory, makes it stable. However, volatility in the crypto market challenged that presumption.

Pierce argued that "the implosion" of the stablecoins has "definitely" made regulation "a hot topic of discussion" and noted that he was happy to learn of "sensible regulation being proposed by people that have invested the time to know what they’re talking about."

Pierce was referencing the Responsible Financial Innovation Act, bipartisan legislation with the goal of creating a regulatory framework for digital assets that encourages financial innovation as well as consumer protections.

U.S. Sens. Kirsten Gillibrand, D-N.Y., and Cynthia Lummis, R- Wyo., introduced the legislation on Tuesday.

Pierce said he is "really happy to see the bill being proposed on a nonpartisan basis."

He pointed to a few "big things" in the bill, including "regulatory clarity in terms of what regulatory body should be overseeing this."

Pierce noted that several agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), said regulation was "their domain."

"The reality is that cryptocurrency is built upon a database architecture called blockchain and you can build anything with the database," he said.

"But the idea of the CFTC being the regulatory body would be my pick if I had to choose one versus the confusion of everyone trying to say that this is their domain, making it difficult for investors, difficult for developers to operate with all that regulatory uncertainty."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
JD Vance Warns Europe Faces “Civilizational Suicide” Over Open Borders and Speech Limits
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
Trump Administration Finalizes Broad Tariff Increases on Global Trade Partners
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
×