The battle that has been fought between the Securities and Exchange Commission (SEC) and crypto investors is reaching a new level in the constantly develping circle of cryptocurrencies. With the recent lawsuits opened against two promnent exchanges , the intentons of SEC and its goals have arosed some suspicion . While SEC is trying to obtain an objective stance , a former senior SEC executive sheds light on the objectives of the agency and its approach to the industry .
In essence , the stance of SEC can be summed up in two options: whether the investor should comply with their terms or they have to face the conseuqneces. Following the collapse of numerous companies and organizations which unfortunately have involved in fradulent initiations, including the industry leading company FTX , the SEC has decided to take a firmer stance . Jonh Reed Stark , a former senior SEC official , shares his opinions on various discussion points of the industry .
What Does the SEC Want?
Even though the investors and certificate issuers have showed hesitation towards the cryptocurrency market to be subjected to US securities laws , the SEC remains very solid ; the regulatory organization defends that existing laws can and will be applied to the industry .
The SEC has been directed to huge number of significant critcism in regards to its guidance for the adoption and implementation in crypto markets ; particularly in the context of the recent detention Binance accounts .
During the hearing in the court, the SEC acknowledged that a long time is needed to clarify the frame of the rules . Nevertheless, the agency also emphasized that crypto companies should adhere to existing regulations .
Cryptocurrencies Approved by SEC
The posibility of SEC giving the aproval to cryptocurrencies seems not very likely; if we particularly consider that a huge number of altcoins have been released through various methods such as pre-sales and launchpads. The number of cryptocurencies without a registered company , foundation or organization that provides a corresponding address can be counted on one hand .
Even though proofofwork (PoW) based altcoins, such as Bitcoin or Litecoin or Dogecoin, do have a chance, the regulatory organization is unlikly to label them as approved cryptocurrencies in the near future without reaching an agreement with the Commodity Futures Trading Commission (CFTC).
PoW-based cryptocurencies which also involved in conflicts with the CFTC may find some fresh air from the SEC ‘ s scrutiny. It is almost certain that Bitcoin will remain under the control and purview of the CFTC .
In conclusion , the SEC ‘ s objectives in the cryptocurrency circles remain focused on enforcing compliance with existing laws concernig the security in the market . The agency curently faces challenges in providing clear guidance to the industry ; nevertheless, it maintains its rigid position on the regulations which can be applied to the crypto market.
Even though the possibility of exiting cryptocurrencies getting the approval from SEC seems highly unlikely, the ongoing discussions between the SEC and the CFTC may impact the future regulatory decisions for cryptocurrencies; particularly those created by proof-of-work mechanisms.
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