• The SEC’s stance on crypto is revealed in guidance to Coinbase, raising questions about the future of crypto assets in the U.S.
• SEC Chair Gary Gensler has espoused that Bitcoin is the only crypto asset considered not to be an unregistered security.
• This could mean that many businesses and exchanges will have to cease operations if they are unable to register with the regulator, but it may be a boon for Bitcoiners as Bitcoin gets a seal of approval from the SEC.
SEC Reveals Crypto Stance
The United States Securities and Exchange Commission (SEC) has given insight into its policy stance on cryptocurrency as part of guidance to Coinbase, the largest crypto exchange in the U.S. According to Coinbase Chief Executive Officer Brian Armstrong, the regulator had advised them to cease trading support for all crypto assets except Bitcoin before filing a lawsuit against them in June.
Implications for Altcoins and US Crypto Businesses
The latest claim from Coinbase suggests that this stance is now an informal policy of the regulator which would have far-reaching effects on businesses that rely on trading these assets since most do not have a clear path towards registering with the SEC. In addition, this could mean that many crypto firms may be forced to cease operations should this policy prevail.
Bitcoin Gets Seal of Approval
This regulatory stance may serve as a boon for Bitcoiners since it appears that Bitcoin has been given a seal of approval by the regulator, potentially paving way for further developments such as ETFs being approved by the SEC in future.
Crypto Industry Left Guessing
The enforcement strategy employed by the agency has largely confused industry participants, making it difficult for companies within this space to predict what actions they must take in order to remain compliant with regulations and avoid penalties from regulators like lawsuits or fines.
Future Uncertain for US Crypto
It remains uncertain what effect this policy will have on cryptocurrencies within America going forward but it certainly raises doubts about their longevity unless they can find ways around this particular issue with regulators in order to continue operating legally without fear of retribution or legal consequences moving forward.