The Security and Exchange Commission in the United States has always been skeptical about cryptocurrencies. While these regulators have not recommended a blanket ban on cryptocurrencies, they have kept a close eye on the industry. One of the biggest questions raised by the SEC is whether or not cryptocurrencies are securities. Some altcoins have already been tagged unregistered securities while overs are under close monitoring.
The Vast Majority of Cryptocurrencies are Unregistered Securities – US SEC Chairman
In a recent speech to the senate committee, Gary Gensler, the current SEC chief, said that he still considers most cryptocurrencies unregistered securities. He said that token issuers should be working directly with members of the Security and Exchange Commission to ensure that these tokens are compliant with USA regulations.
Gensler has always been clear in his stance about cryptocurrencies. While he doesn’t trust most of the tokens in the market, he is open to working with intermediaries in the cryptocurrency industry to give consumers the best.
The unclear regulatory standing of the SEC has remained a major setback that has pushed institutional investors away from the industry. While the SEC has noted that Bitcoin is a commodity, the fate of Ethereum and XRP remains unknown.
XRP has been under fire for many years, facing lawsuits from displeased investors. Ripple, the company that designed the XRP token has stated that XRP is not a security because it does not give buyers shares in the firm. Also, if Ripple was to shut down today, XRP will continue to thrive as an independent cryptocurrency.
What Will Cryptocurrency Regulation Bring?
As matters continue to unfold, one thing remains clear. The SEC and the Commodity Futures Trading Commission will also work to protect investors. While the federal regulation may be against the original purpose of cryptocurrencies altogether, some form of partial regulation will certainly promote global adoption.