So, will the SEC and U.S. government regulate cryptocurrency, and if so, how?
But during the crypto boom of late 2020, crypto regulation became widely discussed.
Whether cryptocurrency needs to be regulated is a huge point of contention among traders and enthusiasts.
In reality, regulating cryptocurrency to some degree can help to mitigatecrypto-related crimesand better protect investors.
It is clear that the SEC has a focus on regulating cryptocurrency.
Why Is the SEC Regulating Cryptocurrencies?
Securities are tradable assets that represent some financial value.
So, there’s an evident push to register and regulate cryptocurrencies as securities.
Coinbase pushed back against this allegation, and the SEC has not yet announced an official investigation.
But such actions highlight that this agency is now geared towards keeping crypto companies in check.
The SEC also sued Ripple Labs for the illegal sale of XRP.
Ripple was also sued for illegally exchanging XRP for non-cash consideration.
There has also been a lot of talk about stablecoin regulation.
The move triggered discussions around whether more rules should be enforced on stablecoin cryptos.
Government Crypto Plans
The Biden administration has also been working on cryptocurrency regulation.
In September 2022, a framework was released by the White House on how cryptocurrencies should be handled.
The framework explored a range of elements and largely focused on fighting crypto-related crimes and protecting investors.
This has not yet been enforced, but it could be in the near future.
Will the SEC and Government Regulate Cryptocurrencies Further?
In addition, Crypto taxation laws may also become tighter for investors.
So, we may see various regulations imposed on the cryptocurrency industry in the near future.
