As is well known, regulation has been a long-term concern to the cryptocurrency market. Regulators are condemned for failing to monitor and support blockchain-related efforts and for allegedly aiming to kill the sector through excessively harsh regulation. The old continent is apprehensive of these new assets, in contrast to the American regulator’s nuanced approach. Gary Gensler’s election to lead the Securities and Exchange Commission (SEC) in 2021 did not make things any clearer. to examine
Crypto: The possibility of going missing
Entrepreneurs who are part of the ecosystem have been strongly critical of regulators for a number of years. The following topic is a contentious one, even in the United States. Companies anticipate that rather than being viewed as securities, digital assets will be regarded as investment contracts that need to be registered with the SEC. However, a cryptocurrency runs the risk of disappearing if it is deemed a security by a US court. Since the exchanges lack a national stock exchange license, they should in fact withdraw the aforementioned digital asset from their site.
Cryptocurrencies are considered securities by the SEC.
The SEC filed a lawsuit in federal court around two weeks ago, alleging that nine tokens listed on Coinbase are securities. However, this qualification causes a misconception. In actuality, the SEC has not stated what makes these tokens unique from other cryptocurrencies. Other than bitcoin (BTC), the SEC Chairman has openly said that digital assets are securities. Coinbase wrote a blog post titled “Coinbase Does Not List Securities” in response to this allegation. End of story (“Titles are not listed on Coinbase. Story over (). Therefore, even in the United States, the gulf between industry and regulator keeps growing.The nomination of Gary Gensler: positive or negative?
President Biden appointed Gary Gensler to lead the SEC in January 2021. He had taught a blockchain course at MIT. Participants in the private market therefore thought that by treating digital assets as securities, it would increase regulatory clarity. But that is not the case. In fact, this position is mostly political and not only legal or financial. At the nexus of a trillion dollar market and conventional financial services, it is situated. The old financial system has a very strong network of influence in every political system, and it is no longer necessary to demonstrate this impact on political decision-makers.
Today, despite regulatory uncertainties, businesses must act and advance. Despite the limited legal options, some people attempt to defend themselves. Asset management Grayscale filed a lawsuit against the SEC in late June after the agency denied the company’s request to turn its “Grayscale Bitcoin Trust (GBTC)” into a spot bitcoin exchange-traded fund (ETF). It is a 2013-launched bitcoin-based investment entity. The average American investor would have easier access to investing thanks to this conversion.
