PANews reported on October 22nd, according to DL News, that the cryptocurrency crash has become a political issue in the United States. Democrats are warning that the government shutdown could trigger another market disaster, and that the paralysis of federal regulatory agencies has exposed investors to significant risks. Maxine Waters, the top Democrat on the House Financial Services Committee, issued a statement on the 21st day of the shutdown, blaming Republicans. She said that Trump and congressional Republicans are integrating cryptocurrencies into the traditional financial system without an appropriate regulatory framework, amplifying risks and threatening to cause similar crashes to spread more quickly to the traditional financial sector in the future. Following the October 10th market crash, Waters stated that the sell-off cost investors billions of dollars and drove traders into traditional safe-haven assets. Furthermore, the flash crash sparked calls for an investigation into insider trading after analysts discovered a single wallet deposited millions of dollars into the Hyperliquid decentralized exchange shortly before the crash. This wallet established significant leveraged short positions in Bitcoin and Ethereum, allegedly profiting over $150 million after the price crash. Waters called on the SEC and CFTC to conduct a thorough investigation and hold the perpetrators accountable. However, with these institutions effectively stagnant, investors have lost key protections and are "extremely vulnerable to another catastrophic crash."PANews reported on October 22nd, according to DL News, that the cryptocurrency crash has become a political issue in the United States. Democrats are warning that the government shutdown could trigger another market disaster, and that the paralysis of federal regulatory agencies has exposed investors to significant risks. Maxine Waters, the top Democrat on the House Financial Services Committee, issued a statement on the 21st day of the shutdown, blaming Republicans. She said that Trump and congressional Republicans are integrating cryptocurrencies into the traditional financial system without an appropriate regulatory framework, amplifying risks and threatening to cause similar crashes to spread more quickly to the traditional financial sector in the future. Following the October 10th market crash, Waters stated that the sell-off cost investors billions of dollars and drove traders into traditional safe-haven assets. Furthermore, the flash crash sparked calls for an investigation into insider trading after analysts discovered a single wallet deposited millions of dollars into the Hyperliquid decentralized exchange shortly before the crash. This wallet established significant leveraged short positions in Bitcoin and Ethereum, allegedly profiting over $150 million after the price crash. Waters called on the SEC and CFTC to conduct a thorough investigation and hold the perpetrators accountable. However, with these institutions effectively stagnant, investors have lost key protections and are "extremely vulnerable to another catastrophic crash."

Senior US Democrats warn: Trump could cause another "catastrophic crash" in the crypto market

2025/10/22 18:23

PANews reported on October 22nd, according to DL News, that the cryptocurrency crash has become a political issue in the United States. Democrats are warning that the government shutdown could trigger another market disaster, and that the paralysis of federal regulatory agencies has exposed investors to significant risks. Maxine Waters, the top Democrat on the House Financial Services Committee, issued a statement on the 21st day of the shutdown, blaming Republicans. She said that Trump and congressional Republicans are integrating cryptocurrencies into the traditional financial system without an appropriate regulatory framework, amplifying risks and threatening to cause similar crashes to spread more quickly to the traditional financial sector in the future. Following the October 10th market crash, Waters stated that the sell-off cost investors billions of dollars and drove traders into traditional safe-haven assets.

Furthermore, the flash crash sparked calls for an investigation into insider trading after analysts discovered a single wallet deposited millions of dollars into the Hyperliquid decentralized exchange shortly before the crash. This wallet established significant leveraged short positions in Bitcoin and Ethereum, allegedly profiting over $150 million after the price crash. Waters called on the SEC and CFTC to conduct a thorough investigation and hold the perpetrators accountable. However, with these institutions effectively stagnant, investors have lost key protections and are "extremely vulnerable to another catastrophic crash."

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Share Insights

You May Also Like

BlackRock Increases U.S. Stock Exposure Amid AI Surge

BlackRock Increases U.S. Stock Exposure Amid AI Surge

The post BlackRock Increases U.S. Stock Exposure Amid AI Surge appeared on BitcoinEthereumNews.com. Key Points: BlackRock significantly increased U.S. stock exposure. AI sector driven gains boost S&P 500 to historic highs. Shift may set a precedent for other major asset managers. BlackRock, the largest asset manager, significantly increased U.S. stock and AI sector exposure, adjusting its $185 billion investment portfolios, according to a recent investment outlook report.. This strategic shift signals strong confidence in U.S. market growth, driven by AI and anticipated Federal Reserve moves, influencing significant fund flows into BlackRock’s ETFs. The reallocation increases U.S. stocks by 2% while reducing holdings in international developed markets. BlackRock’s move reflects confidence in the U.S. stock market’s trajectory, driven by robust earnings and the anticipation of Federal Reserve rate cuts. As a result, billions of dollars have flowed into BlackRock’s ETFs following the portfolio adjustment. “Our increased allocation to U.S. stocks, particularly in the AI sector, is a testament to our confidence in the growth potential of these technologies.” — Larry Fink, CEO, BlackRock The financial markets have responded favorably to this adjustment. The S&P 500 Index recently reached a historic high this year, supported by AI-driven investment enthusiasm. BlackRock’s decision aligns with widespread market speculation on the Federal Reserve’s next moves, further amplifying investor interest and confidence. AI Surge Propels S&P 500 to Historic Highs At no other time in history has the S&P 500 seen such dramatic gains driven by a single sector as the recent surge spurred by AI investments in 2023. Experts suggest that the strategic increase in U.S. stock exposure by BlackRock may set a precedent for other major asset managers. Historically, shifts of this magnitude have influenced broader market behaviors as others follow suit. Market analysts point to the favorable economic environment and technological advancements that are propelling the AI sector’s momentum. The continued growth of AI technologies is…
Share
2025/09/18 02:49