{"id":20834,"date":"2023-05-12T02:54:16","date_gmt":"2023-05-12T02:54:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-chair-warns-us-default-would-have-significant-and-lasting-effects-on-investors-markets-economics-bitcoin-news\/"},"modified":"2023-05-12T02:54:16","modified_gmt":"2023-05-12T02:54:16","slug":"sec-chair-warns-us-default-would-have-significant-and-lasting-effects-on-investors-markets-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-chair-warns-us-default-would-have-significant-and-lasting-effects-on-investors-markets-economics-bitcoin-news\/","title":{"rendered":"SEC Chair Warns US Default Would Have ‘Significant’ and ‘Lasting Effects’ on Investors, Markets \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Securities and Exchange Commission (SEC) Chairman Gary Gensler has warned that the U.S. Treasury defaulting on its debt obligations \u201cwould have very significant, hard to predict, and likely lasting effects on investors, issuers, and markets alike.\u201d Gensler stressed: \u201cWe\u2019ve already seen an effect in the pricing and liquidity of short-dated Treasury bills and continue to monitor for any additional tremors.\u201d<\/strong><\/p>\n

SEC Chair Gary Gensler on U.S. Debt Default<\/h2>\n

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has weighed in on the impact a U.S. default would have on capital markets as discussions of the U.S. defaulting on its debt obligations heat up in Congress.<\/p>\n

\u201cI\u2019d like to say a few words regarding the ongoing discussions in Washington around the debt ceiling,\u201d the SEC chairman said in his remarks before the International Swaps and Derivatives Association annual meeting Wednesday. Gensler cautioned:<\/p>\n

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If the U.S. Treasury as an issuer were actually to default, it would have very significant, hard to predict, and likely lasting effects on investors, issuers, and markets alike.<\/p>\n<\/blockquote>\n

\u201cIn a word, it would make the Cyclone Roller Coaster at the 1933 Chicago World\u2019s Fair look like a kiddie ride,\u201d he stressed.<\/p>\n

The SEC chairman also clarified: \u201cWhile we at the SEC have no direct role in those discussions, the outcome is directly consequential to each part of our mission: protecting investors, facilitating capital formation, and maintaining fair, orderly, and efficient markets.\u201d<\/p>\n

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We\u2019ve already seen an effect in the pricing and liquidity of short-dated Treasury bills and continue to monitor for any additional tremors.<\/p>\n<\/blockquote>\n

U.S. Treasury Secretary Janet Yellen revealed last week that the Treasury Department may not be able to pay all of the government\u2019s bills as early as June 1<\/a> \u201cif Congress does not raise or suspend the debt limit before that time.\u201d She also warned of \u201ccatastrophic\u201d consequences of the U.S. defaulting on its debt obligations.<\/p>\n

What do you think about SEC Chairman Gary Gensler\u2019s warning regarding the impact a U.S. default would have on capital markets? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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