The U.S. Securities and Exchange Commission is expecting the new rules to be implemented on the exchanges and that the digitized cryptocurrency trading platforms should be registered with the regulators. The Commission has also claimed that the platforms which are speculated to be illegal, might seem delusional to the investors since they are claiming themselves to be ‘exchanges’.
Increased regulations on the way:
Registration with the SEC will ensure that the illegal platforms are scraped out from the list and only the regulated ones are allowed to do the business.
This is by far the latest effort by the SEC to curb the increasing illegalities and ensure federal security laws are applied to the sector. SEC Chief, Mr Jay Clayton has time and again showed his concern regarding a more secure Crypto establishment. It is indeed an ethical stance to seek immediate attention to this issue.
“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not,” an eminent SEC member stated. Bitcoin has fallen again to a two week low of $9,450. Other virtual currencies Ethereum and Ripple have also shown the sharp decrease by losing 9 and 8 percent respectively.
Clayton has constantly reminded that ICOs needs regulation as well. Dina Ellis Rochkind, a lawyer at Paul Hastings, said that this is another attempt by SEC to alter the existing regulations and make sure that the new ones provide a safer and more secure environment for the investors. “The SEC statement foreshadows that it will be cracking down on the numerous platforms that are operating illegally and could be subject to market manipulation. This is a positive step because it will shut out bad actors and further legitimize the industry as it matures,” she stated.
Perhaps, the Crypto world will overcome these obstacles with increased supervision and regulations.