14 May Cryptocurrencies regulation to be improved by SEC
- SEC will try to improve its analysis for the crypto market.
- Since 2013, the SEC has issued alerts on cryptocurrencies.
For the use of cryptocurrencies the SEC filed 75 actions and gave 19 commercial suspensions from July 2013 to December of last year. These blockades by the United States Securities and Exchange Commission put the investors of each cryptocurrency on alert. At least 43 actions were resolved in court, while 32 of the actions were resolved within the SEC.
Of those 43 actions litigated in court, more than half occurred in New York. These reporting issues were resolved in March 2021 at a value of $1.77 billion in total fines.
SEC puts pressure on cryptocurrencies
According to the report published by Cornerstone Research, the Securities and Exchange Commission has positioned itself as the primary regulator of cryptocurrency. The agency has had many work filing business suspensions and requested several statements from individual or other regulators. The SEC has also done its duty in alerting traders to the regularizations in cryptocurrency from 2013 to 2020.
The first action the SEC took against cryptocurrency was in July 2013 for a Ponzi scheme involving Bitcoin. Although the SEC’s participation from 2013 to 2016 was low in the market, its suspensions increased for 2017. The most significant demand from the SEC towards the crypto user has been for not registering as a broker.
A large part of the SEC’s guidance on cryptocurrency includes an alarm to investors since the Shavers case in 2013. However, the SEC has also given guidance without first acting on the case. For example, the commission warned about investments based on celebrity speculation since 2017.
SEC a leader in the field of cryptocurrencies
The US Securities and Exchange Commission leads as the foremost legal analysis system of the field of cryptocurrency. In 2017, the SEC published a report on DAO to determine if the token serves as an investment contract. This analysis caused the issuer of the coin offering to pause for failing to record its price.
But William Hinman, CFO of the SEC, states that neither the cryptocurrency Bitcoin nor Ethereum has an analysis to separate their tokens. That announcement was made formal in April 2019 for cryptocurrency investment contract analyzes.
Cornerstone Research Vice President Abe Chernin says the SEC is trying to catch up on cryptocurrencies. Although the commission has been tough on the decentralized market in the past, it is now trying to flex its measures. The regularization of cryptocurrencies is a priority for the market to function under its conditions.
The SEC will try to focus on crypto regularization, so traders understand its mechanism perfectly. The commission acts again due to the recent change in the market where many cryptocurrencies increased. Investments have significantly risen, and many irregularities can occur, which is why the SEC is on the lookout and understandably so.
Cryptocurrencies regulation to be improved by SEC: https://www.cryptopolitan.com/cryptocurrencies-are-being-regulated-by-sec/