Home
News
- The SEC is ready to deal in cases that involve digital assets, currencies and FinTech as investors raise the alarm over suspicious activities
- The USA has placed some rules and regulations that vary according to States and are slowly increasing the degree of regulation
- The Crypto community remains divided as one part is strictly against them, and that regulations will kill the only motive for the existence of cryptocurrencies
We know that regulations are placed at the core of consumer protectionism and benefit retail investors. The US SEC chief has doubled down on similar lines and stated that the commission should be ready to entertain cases related to cybersecurity and FinTech, especially in cryptocurrency. Several countries have imposed some form of regulations to prevent extortion and funding of terrorist activities. On the contrary, big investors and crypto miners have voiced their opinions against the regulations as they defy the main feature that helps them exist in the first place.
USA is now screaming regulations in the crypto space
While not as harsh as China, the United States of America plans to regulate cryptocurrency like no other. Recently, it initiated plans to report transactions over and above $10k to the Internal Revenue Service for regular audit. SEC Chief Gary Gensler is interested in bringing cryptocurrency under the country’s financial laws to protect small investors. It will help them build a sense of trust and invite new investors to the crypto space.
Moreover, the IRS has not considered digital currency to be a form of legal tender but defines it as a mode of payment or a means of exchange. Several states have considered crypto exchanges and allowed them to function freely. On the other hand, states like New York have issued strict guidelines to adhere to at the time of inception.
Regulations divide the crypto world
Investors would love to have an environment free from fraud, and the small is not extorted at the actions of the whales. It will help strengthen competition through the country and establish an even playing ground for all. Furthermore, cryptocurrencies will help achieve economies of scale in a superpower that has a lot of growth potential.
Subsequently, it has divided the crypto diaspora with a group of investors pressing for better regulations while the other half deems it unfit to regulate cryptocurrency. The digital currency does not have a central authority to regulate and supply its flow. It makes it unique for new investors looking to profit from short-term volatility. They are strictly against being regulated in any form and from any organization.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
