A Secret ‘Alliance To Destroy Crypto’ By ‘Usurping Congress’—Key Elon Musk Ally Fans Wild Rumor That’s Played Havoc With The Price Of Bitcoin And Ethereum

Bitcoin
BTC
and ethereum—the two largest cryptocurrencies by a considerable margin—have swung wildly this week as sudden regulatory action rocks the cryptocurrency world (with more crashes expected).

Subscribe now to Forbes Blockchain and Crypto Asset Advisor and successfully navigate the roller coaster of the bitcoin and crypto market

The bitcoin price has plunged to levels not seen since March of this week following a devastating double whammy by the US Securities and Exchange Commission (SEC) against first Binance and then Coinbase.
CURRENCY
two of the largest crypto exchanges in the world, that has led to a stern warning from Coinbase.

Now David Sacks, a tech investor who is a close associate of Tesla billionaire and Twitter owner Elon Musk, has claimed without evidence that SEC Chairman Gary Gensler and influential US Senator Elizabeth Warren have formed a " alliance" to destroy cryptocurrencies in the US.worsening a massive bitcoin and crypto price crash.

It is in times of crisis that up-to-date information is most needed! Sign up now for free CryptoCodex—A daily newsletter for traders, investors and the crypto-curious that will keep you ahead of the market.

MORE FROM FORBES'Market manipulation and insider trading': Elon Musk and Tesla face a nightmarish new challengeBy Billy Bambrough

"The rumor is that [Gensler] has an alliance with Elizabeth Warren, and the rumor is that she will make him Treasury Secretary if he basically destroys cryptocurrency in the US," Sacks saying about him all-inclusive podcastalong with fellow investors Jason Calacanis, Chamath Palihapitiya and David Friedberg.

This week, the US Securities and Exchange Commission (SEC) shocked the crypto market by accusing Coinbase of operating illegally, expanding its crackdown on the industry after suing the crypto trading platform over The world's largest Binance, accusing it of a series of violations including mishandling user funds, inflating trading volume and evading regulation.

In April, Palihapitiya, speaking on the same podcast, declared, “crypto is dead in America”—correctly predicting that regulators will come for crypto companies like Coinbase in the wake of the 2022 bitcoin and crypto price crash that led to the implosion of major exchange FTX.

“What Gensler and the SEC are saying is that it is not legal to operate a cryptocurrency exchange in the United States,” Sacks said. "I think Gensler is far exceeding his authority to say something like that. It's not for the SEC chairman to say Americans shouldn't have crypto."

Earlier this year, Warren noted that he is "building an anti-crypto army" as part of his re-election campaign, adopting a quote from a political profile.

Sign up now for CryptoCodex—A free daily newsletter for the crypto-curious

MORE FROM FORBES$100B Crypto Price Crash Prompts Dire Warning From Coinbase as Bitcoin and Ethereum TumbleBy Billy Bambrough

Last week, US lawmakers introduced a bill in Congress proposing a "functional framework" designed to provide regulatory clarity for bitcoin and crypto businesses in the country.

The new US cryptocurrency bill, after several attempts to pass cryptocurrency legislation in previous sessions, proposes that cryptocurrencies offered as part of an investment contract would be placed under SEC oversight, while that qualify as commodities would be overseen by the Commodity Futures Trading Commission (CFTC). .

"Everyone should understand that what the SEC is doing right now is basically usurping the authority of Congress," Sacks said. "It should be Congress that makes the law. If Congress wants to ban cryptocurrency exchanges in the United States and prevent United States citizens from owning cryptocurrency, let Congress do it. It should not be up to Gensler to do that." .