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- SEC Chief wants more regulations in the crypto space to safeguard investor’s interest
- Regulations will protect them from manipulation, fraud and rug pulling which are common activities to lure money from retail investors
- Strict norms and policies will put an end to criminal activities and build a stronger and efficient investing/trading platform
Several scams related to cryptocurrency that have taken away investor’s money has come to the forefront that the US SEC believes it is just to regulate the market. The digital asset space should have a regulated authority that looks over the functioning and norms of Decentralized Finance. SEC Chief Gary Gensler reiterated the fact that no regulation in cryptocurrency has hurt a lot more investors that one could think of. Moreover, investors will be able to place their trust and invest/trade in cryptocurrency without any hesitation.
US regulators sparred over policies to implement
History is a witness that several regulators did debate over the extent of regulation required within the digital currency space. Experts believe that regulation will bring in some form of uniformity among investors and they would find the marketplace even more trustworthy. However, central authority will kill the unique feature of cryptocurrency and decentralised finance as a whole.
In his speech, Gensler stated that the primary reason for not accepting Bitcoin ETFs is the extent to which investors will be manipulated by market influencers. Numerous exchanges have tokens listed on them that have not registered themselves with the Commission. The chief views regulations as a medium to protect investor rights in times of fraud and manipulation.
Trading volume difference irks chief
Bitcoin lost one-third of its value last week from highs of $62k just last month. Furthermore, the trading value had a range of $130 billion to $330 billion per day over the last few weeks. The numbers are staggering and investors need to be protected from any crime or scam that has shook the prices. The SEC is willing to drag the wrongdoers, like Ripple and many others, to court and sue them for their illegal activities.
The SEC has filed cases against 75 activities that were deemed illegal and will continue to do so for the betterment of the society. Large investors are trying to run after yield-bearing crypto instruments and drive the market to their favour. The process is known as rug pulling which has become a common activity among the criminals. Regulations will bring in some sanity and pave the future of Decentralised Finance.
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.
