• Tue. Apr 23rd, 2024

Cryptocurrency Is Not Resistant To Regulation: Report

Maria Bartiromo

ByMaria Bartiromo

Jun 19, 2023

Of recent, the crypto industry has been witnessing heavy regulatory clampdown from the United States regulators, especially the Securities and Exchange Commission (SEC). The latest of the regulator’s actions was last week’s lawsuit against Binance.US and Coinbase, which are the top two leading exchanges in the country.

According to the report, the duo exchanges were sued by the SEC for illegally listing tokens that were considered securities. Apart from the two platforms, the regulators have extended their enforcement tentacles across numerous crypto firms in the region in time past.

Although the regulatory enforcement actions of the regulators seem to be full-fledged, some crypto experts still believe that the crypto industry would survive in the end. In addition, they believe that retail crypto services will thrive even admits the harsh regulations enacted in the country.

US Market Is Crucial for The Crypto Industry’s Growth

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However, the crypto market spectators admitted that it might be difficult for institutional investors to thrive in the crypto space as the regulations heavily restrict their actions.

According to the report, many believe that crypto has always been an underdog striving to dominate the financial sector globally. And as such, facing the cold hands of the regulators is a necessity for achieving its aims.

Furthermore, some crypto enthusiasts believed that the American SEC is not capable of shutting down the operation of crypto in the world. Rather, they only have the power to halt the industry’s growth in the region.

However, closing the US crypto market would pose a grave problem to the general crypto market because the US holds the biggest financial market globally. For instance, the US reportedly has 45 million crypto investors, coming behind India and China only.

But beyond the retail players, the institutional players are the real determinants of the crypto industry’s fate.

Crypto Trajectory Journeys Downward

According to reports, the crypto industry experienced a massive increment in 2021 when giant firms started flooding in, creating wild mainstream and global adoption for blockchain innovation.

In 2021, Tesla purchased Bitcoin worth $1.5 billion, and El Salvador adopted BTC as a legal tender in its territory. In addition, the first Bitcoin ETF was launched by ProShares, dubbed BITO, and available on the New York Stock market.

Ever since crypto transformed from an entity enthusiasts toy with on the internet to a major financial asset class that has massive implications. In addition, demands for crypto rose astronomically across the globe, forcing many institutions to join the rapidly evolving financial tech. The trajectory of the crypto industry continued, moving fast upward.

However, since the tragic collapse of high-profile crypto firms like Terra and FTX began in late 2022, the industry has gained a bad image, leaving most enthusiasts skeptical about their investment safety. The stringent actions of the SEC worsen the situation, making many firms consider moving offshore.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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