The post Crypto Crash Looming? SEC Might Label All Cryptocurrencies Except Bitcoin as Securities appeared first on Coinpedia Fintech News
The United States Securities and Exchange Commission (SEC) has intensified its altcoin crackdown, with Bitcoin narrowly escaping the regulator. The SEC Chair Gary Gensler has time and again argued that cryptocurrency projects that participated in initial coin offerings (ICOs), initial DEX offerings (IDOs), and initial exchange offerings (IEOs) are to be considered a security.
Additionally, Gensler has argued that cryptocurrency projects with people working on their prosperity with investors hoping for profit based on their efforts are simply operating as unregistered securities.
As a result, most altcoins, including Ethereum (ETH), with development foundations behind them, are facing regulatory upheaval in the coming months. Moreover, most crypto projects are interested in United States investors since the country controls approximately 25 percent of global economic activities.
Nonetheless, some projects have begun looking elsewhere to base their companies to navigate the crypto winter. The ongoing Ripple vs SEC lawsuit has seen Brad Garlinghouse state that the company could relocate to crypto-friendly nations should the court deem XRP unregistered securities.
Reactions to SEC and Gensler’s Take on Crypto Regulations
With the SEC already on crypto staking projects – following the Kraken exchange’s $30 million settlement – most PoS-secured blockchains like Solana, Ethereum, and Cardano, among others, are facing regulatory uncertainty. Nonetheless, Chief Policy Officer at Blockchain Associations Jake Chervinsky thinks the SEC and Gensler lack the authority to regulate all crypto.
Notably, Chervinsky argued that the SEC and Gensler should prove their case in court against each crypto asset instead of generalizing the entire altcoin market.
Meanwhile, Bitcoin maximalist Michael Saylor responded to it indicating that Bitcoin is the only digital asset worth using as global money.
- Mobile app
- Telegram Channel
- Telegram Group
- Binance Referral Link
- Bitmex Referral Link
- (Recommended For Leverage) ByBit Referral Link
- Buy Ledger Nano at discounted price
- Buy Cool Wallets at discounted price
Don't forget to share your review/suggestions for the android app.
All In One Crypto App is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by All In One Crypto App or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risks