Free private sec chat
The second news, which also came as a shock for crypto participants, was the Securities and Exchange Commission (SEC) releasing a public statement in which it reiterated its stand and strongly advised crypto platforms to get registered if they want to continue doing business in the United States.
Before getting into how these events will impact participants in the crypto market, let us take a closer look at both these stories.
I have no business relationship with any company whose stock is mentioned in this article.
Expertise Made Easy CCH® Accounting Research Manager® provides information and organizes content in an intuitive way to make you the expert you need to be.
Whether someone is a crypto investor or speculator, I don't see how regulations can negatively impact them.
Yes, I know that one of the hallmarks of cryptocurrencies, something that is touted often, is that they are free from the control of governments and central bankers and thus can't be manipulated with.
Check out the comments that the agency has made regarding the same: These moves reveal that a mere public statement from SEC asking for crypto companies to register with regulators is enough to send the cryptocurrency market crashing. The inference is simple, crypto markets currently are rigged and have a lot of 'bad actors'.
The SEC will be making it mandatory for crypto platforms to register with regulators.There have been too many hack attacks, malfunctionings, unfair practices and sudden crashes. Here is what will happen- While all the above points are for companies and startups that have only been working in the crypto space, there is also a case to be made for established companies that are planning to or have already entered the space.At the end of January this year, Square Inc (SQ) launched a service for users of its Cash app (barring those in New York, Georgia, Hawaii, or Wyoming) which allows them to trade in Bitcoins.This nervousness results in them cashing out of the markets in a hurry, thereby punishing even the honest market participants.So, what will happen when regulators come in full force against the bad actors? After going through what the CFTC, SEC and the FINRA have been reiterating over the past few months, it is clear that crypto platforms will have to clean up their act.
They all are financial firms with established track records, so compliance and regulations are not new to them.