SEC boss Gary Gensler warns Terra's crash will be followed by more crypto failures, and that will knock confidence in wider markets

The chair of the Securities and Exchange Commission expressed his concerns about the market after the collapse of TerraUSD.

Speaking to reporters after a House Appropriations Committee panel hearing on Wednesday, Gensler said that a lot of them would fail, according to the Wall Street Journal.

I fear that there will be a lot of people hurt, and that will undermine some of the confidence in markets and trust in markets.

TerraUSD and luna crashed last week after the former lost its peg with the US dollar. The paper value of the two token free fall was estimated to be $50 billion.

The risks to the investing public are highlighted by the recent volatility in the markets. He called for an increase in the SEC's budget to monitor the industry during the hearing.

He said that the highly volatile and speculative marketplace has mushroomed, attracting tens of millions of American investors and traders.

The SEC needed more regulatory authority over the market, Gensler said last year. He said that if the rules are in place, it will become mainstream.

The SEC said it nearly doubled the size of its enforcement unit, adding 20 more positions to protect investors in the market.

The US has the greatest capital markets because investors have faith in them, and it is important to dedicate more resources to protect them, Gensler said in a press release.

According to analysts from JP Morgan, the crash of thecryptocurrencies isn't a repeat of last winter. They explain why market conditions could still bring significant upside despite reverting institutional demand.