SEC's harsh yet unclear crypto regulation is detrimental to crypto market

27 May, 2019 | Updated: 27 May, 2019
by Fifi Arisandi
Opinion
SEC's harsh yet unclear crypto regulation is detrimental to crypto market

The crypto regulation uncertainty in the US, which is causesdby the SEC's unclear stance towards crypto is said to drive innovation away from the US and impact the safety of the crypto market a whole. 

Major crypto exchange Poloniex just announced a new policy, which is geofencing nine of the assets on their platform.

The move was taken as they think that crypto regulation is uncertain in the US. Fearing the Security and Exchanges Commission (SEC)’s retribution, they decided to take the cautionary step.

The co-founder of Union Square Ventures, Fred Wilson recently said that the SEC’s having the power to delist coins in US crypto exchanges is very damaging.

He is concerned if such practices continue, it will drive away innovation from the US to other regions, such as to Asian countries.

“In 5-10 years when we look back and consider why the next big tech sector centered itself in Asia and not in the US, it will be the SEC’s unwillingness to create new rules to regulate new assets that will be the cause,” Wilson said.

He further said that SEC’s move will also have a detrimental effect to safety and security in crypto market as a whole as according to him, the “most trusted/compliant/secure/safe” exchanges were based in the US.

Preston Byrne, an attorney at Byrne & Storm agreed to the statement as he said “alleged misconduct” in Asia would be harmful to the entire crypto-space and emphasized that the “bad actors” in crypto need to be identified and eliminated.

In another comment, the founder of BlockTower Capital, Ari David Paul said, “Hopefully we’re not headed toward a world where voluntary commerce can be stamped out globally. So for a global asset, this will always be an issue. Fortunately, you don’t need to care. $1b in CME future volume is real and traceable. Manipulation is temporary by nature.”

Responding to the statement, Byrne said that $3 billion of Tether [USDT] was what kept Binance and Finex “afloat” and contributed significant volumes and were currently under the heavy check by State of New York and that the aforementioned platforms were a “hair’s breadth away” from an investigation regarding fraud, as quoted by AmbCrypto.

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