- The crypto community is not in agreement on the fact that the U.S. Securities and Exchange Commission (SEC) needs to do more to protect the industry amid a rise in crypto fraud.
- It’s said that the SEC hasn’t provided investors with a clear and concrete regulatory framework. In simple terms, investors are left with fear and uncertainty.
- Members of the Bitcoin community emphasize that if the SEC continues to be inactive in regulating Bitcoin fraud, it could affect the price in the short and medium term.
SEC Chairman Gary Gensler frequently states that Bitcoin involves fraud. So why is the SEC choosing to watch rather than take action?
What Is the SEC Doing Regarding Bitcoin Frauds?
The crypto community is not in agreement about whether the U.S. Securities and Exchange Commission (SEC) should do more to protect the industry during a rise in crypto fraud. However, SEC Chairman Gary Gensler has indicated that crypto ventures do not want to fall into the regulated category and yet seek the advantages of protection.
There’s no global consensus on how digital assets should be regulated. Each country takes a different approach, with some yielding positive results while others remain skeptical about whether they should regulate them.
It’s said that the SEC hasn’t provided investors with a clear and concrete regulatory framework. In simple terms, there’s fear and uncertainty in the minds of investors because the SEC hasn’t taken a clear stance with regulatory measures.
This hasn’t been proven so far. However, expressions have been made that the SEC has contributed to bearish sentiment in the crypto market. Members are to some extent correct in claiming they are looking for a structured guide for crypto investments. Opposition signs specify the same area that returns with an increase in trading value.
For example, BTC is currently trading above $30,000, and ETH has surpassed the $1,500 milestone, both of which have occurred within the past two months. That doesn’t mean the SEC’s inaction doesn’t affect them; it just indicates that a series of factors may have an impact on the change in market sentiment, and the SEC’s influence is significant.
For example, Bitcoin fraud is associated with a gap created by the SEC’s inaction, which malicious actors have exploited to undermine investor confidence. All they want is to feel safe when putting their money into the market.
BTC prices are on the rise as of writing. Members of the Bitcoin community emphasize that if the SEC continues to be inactive in regulating Bitcoin fraud, it could affect the price in the short and medium term.
The SEC should take action to protect investors from Bitcoin fraud
Rumors circulating in the market suggest that the SEC is being pressured to take action and make choices. There’s an exploited gap to further disrupt market sensitivity, and rectifying the bear market to speed up the transition to the bull market is only possible through actions.
The SEC should publish guidelines on Bitcoin and other digital assets. The draft should provide investors, regardless of market time, with a clear and comprehensive set of guidelines and clarify Bitcoin’s classification under the U.S. Securities Act to reduce risks.
A task force should be created to show bad actors that the SEC is not idle and is taking measures to protect investors. They are likely not to be entirely deterred, but fraud will be significantly reduced.
The SEC should collaborate with other countries like Canada and Paraguay, where Bitcoin miners not only shine but also advance the local economy. They’ve made their activities compatible with the countries’ carbon targets. This will boost the local GDP, attract a certain type of investor, and show their responsibility to the environment.
Effects on Bitcoin’s Price
As of writing, BTC is trading at $34,050. This is a substantial leap from the $28,000 level during the same period amid allegations that the SEC has taken no action. Concerns suggest that the short and medium-term effects will be felt if the Commission continues its current stance. The only way to return the sector to its all-time high value is through the implementation of a structured guide.
Investors feel safer and make higher investments by accumulating more tokens in their wallets. Higher investments imply only when the economy gets back on track; real-world use cases won’t take a backseat.
