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Crypto regulation has been as hot a topic as cryptocurrency itself for a long time now. Demands for cryptocurrencies regulations are being seen as taking control over digital currency and their exchanges by crypto users. Is this the right thing to ask for, or is it bad or good? It depends on which side you are standing. For pro-crypto users, Crypto regulation is not needed at all. But why’s so? The clear answer for this could be easily understood by the reason behind the beginning of digital currency itself.
Clear and accepted reasons behind the need and then the origin of Crypto or digital currency was The Great Recession of 2008, which was considered a banking system failure. Without seeking permission from account holders, banks provided loans in significant volume to companies, resulting in a Recession when banks couldn’t recover the loans. After all, those who suffered that loss, those who believed in banks. The recession was when most people got aware of the inefficiency and distrustful nature of the banking system. When people understood the demerits of these centralized authorities controlling their money, an idea of decentralized digital currency came into existence. That idea of cryptocurrency resulted in the origin of Bitcoin, and then the impact it brought and the fame it got is now everyone can see.
But now, asking for crypto regulation is something like taking its control and eventually could make it centralized, which is the opposite of what it is supposed to be. Crypto had made users take total control of their transactions, the assets of their own will. Central authorities of many countries are eager to make crypto regulations in their jurisdiction. In America, too, the Security and Exchange Commission (SEC) has been thinking about crypto regulation for a long time now.
Although discussions were going on regarding Cryptocurrency regulation, discussions included whether there are crypto regulations or not, one or more regulators, etc. On one side, SEC took regulations to be a must and showed a regressive approach, but on the other side, the Congress’ provisions for digital currency are comparably soft.
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Many pro-crypto officials in the US are somewhat positive about crypto regulations. Former CFTC chairperson Christopher Giancarlo, also known as ”Crypto Dad”, expects US legislation to go comfortable with Crypto because of his positive stances towards Crypto. He thinks that Congress will push back regressive moves of the SEC towards crypto regulation. ”Crypto dad” also talks about SEC regulations over Crypto might not help the market grow up at the pace it had been in the past. The Crypto market has welcomed many people to invest in the market. Still, SEC’s crypto regulations may limit the investing only to the wealthy and influential firms or individuals, snatching investment opportunities from ordinary crypto users.
Current SEC Commissioner Hester Pierce is too outspoken about how she sees this as a failure of the SEC not to make a working Crypto regulation; instead, they tend to regulate it by enforcement.
However, the SEC’sSEC’s steps towards the Crypto regulations were somewhat not that bad. For instance, approving the Proshares Bitcoin Strategy ETF, which was the first Bitcoin-Exchange Traded Fund (ETF) to get approved by the SEC. Overall this will be a matter of time where Crypto regulations will go and how it will be welcomed by users and Crypto enthusiasts, not just in the US but all over the world.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
