Is crypto regulated by SEC?
The SEC is working on having crypto platforms regulated like traditional securities exchanges. Some digital assets meet traditional tests applied to investment contracts and securities. Crypto trading and lending is highly concentrated in just a few platforms.
What do the new SEC regulations mean for cryptocurrency?
The Securities and Exchange Commission typically works to safeguard investors and the market. Its goal is to create a greater sense of market transparency by enforcing security laws and penalizing dishonest behavior in the market and financial sector. Cryptocurrencies are currently not fully registered with the SEC.
Why regulating Crypto is bad?
Regulations can be good or bad depending on the specifics of the regulation and the overall number of regulations. Some regulation is needed, but over-regulation could kill or limit innovation and growth in the crypto market. On the plus side, regulation expands the investor base by bringing more legitimacy to the crypto space.
Should cryptocurrency exchanges register with the SEC?
The SEC has released a statement proclaiming that crypto coins should be labelled as securities and crypto exchanges, therefore, need to register with the SEC. A security, as commonly defined, is any investment on which the investor hopes to profit via others' efforts. Essentially, a security is a tradable financial asset.