The regulatory space within the crypto market has become a big question mark SEC, along with many other regulatory commissions working in their own capacity have taken a strong charge against the unregulated securities and other virtual entities of the crypto market.
It is true that the crypto market has not been at its best recently due to a large number of corrections, the bear market that has prolonged itself, and the untapped interruption of the increased volatility. But still, crypto analysts believe that a price reversal might be in order, but this black cloud of SEC rising above the horizon begs to differ.
SEC has had a rather unpleasant interaction with Coinbase, the biggest crypto exchange operating within the US for listing securities that were potentially unregulated and hence were presumed unsafe for trading.
According to SEC, Coinbase didn’t ask for approval nor tried to tell SEC in advance before listing those unregulated securities, which led to a massive clash. On another front, SEC is also engaged with Ripple in a lawsuit that doesn’t seem to be ending anytime soon. It seems that SEC is poking each and every digital element just to have its way, and often times it has been said that the SEC is enforcing regulations beyond its area of operation, which is totally unfair.
Recently the commission has started looking into the affairs of Binance, another well-reputed crypto exchange out there and has said that multiple assets listed on the exchange need to be taken down right away because these are in offence with the compliance and regulations of the commission. Is SEC being unjust here or is there something else at play here?
SEC vs CFTC
It has been hinted by the Senate that they are interested in giving CFTC control over the crypto space as the commission has had control over the virtual currencies since 2014. But SEC has made it clear abundantly that they want complete oversight over the crypto market and no interference of any kind. It is still unsure who would get to have the upper hand when it comes to regulating the crypto space.