By
Temitope Olatunji
April 18th, 2024
Cramer also cautioned investors to realize that companies will likely continue to have difficulty making long-term plans as they cope with the swift and ongoing changes in the economy, and that includes crypto firms.
Jim Cramer is urging the United States Securities and Exchange Commission (SEC) to take action on crypto pump-and-dump schemes. Speaking on his “Mad Money” show on August 18, the CNBC host stated that one of the most “troubling issues” that the securities regulator should be looking into right now is cryptocurrency pumping.
Cramer revealed that a lot of cryptocurrencies are being pushed by their developers and ultimately liquidated into the hype. “I think it’s vital for the SEC to pursue these targets aggressively,” the TV host stated.
Cramer also expressed his fear of Congress subjecting cryptocurrencies to regulation by the SEC’s sister regulator, the Commodity Futures Trading Commission (CFTC), which would have a considerably more accommodative stance toward cryptocurrencies.
A new bill proposed by Sens. Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY) would give senators such authority, which, according to the CNBC host, would be a big mistake with regards to the rate at which illegal behavior is happening within the cryptocurrency space.
Cramer also added that he also thinks that special purpose acquisition companies (SPACs) should be the subject of an SEC crackdown since it is “unfair” to expose the general public to securities that have such “huge defects,” even if they are disclosed.
According to reports, SEC Chair Gary Gensler has, however, denounced the effort to discredit his organization, stating that the plan would adversely harm the capital markets.
In the early stages of July, Cramer projected that the cryptocurrency industry could fall further, following the June crash. Even though the big coins actually overperformed that month, they are once again on a bearish path due to macroeconomic uncertainty.
Cramer also cautioned investors to realize that companies will likely continue to have difficulty making long-term plans as they cope with the swift and ongoing changes in the economy, and that includes crypto firms.
The “Mad Money” anchor added that”in that kind of situation, you can’t really plan; you simply have to guess.” And 2022 will be remembered as the year that many companies and fund managers made grave errors in judgment.
“In that kind of environment, you can’t really plan, you just have to guess, and 2022 will be known as the year when many businesses and portfolio managers guessed dead wrong.”
Earlier today, the price of Bitcoin fell to $21,400, just days after regaining $25,000 due to the excitement about inflation figures that came in lower than expected.
The digital coin, at press time, was trading at $21,450, down 9.04% in the past 24 hours. The second in command, ETH, was also down 8.36% in the last 24 hours, trading at $1,700.20 at press time.