As Bitcoin closes in on $50,000, a significant psychological price level, one of the SEC’s top brass calls for additional regulatory oversight.
Nicknamed “Crypto Mom” by her supporters due to her positive outlook regarding cryptocurrencies, Securities and Exchange (SEC) Commissioner Hester Pierce is calling for additional clarity into cryptocurrency regulatory oversight.
This comes following the recent announcement by Telsa stating that it purchased $1.5 billion worth of Bitcoin. Furthermore, Mastercard, one of the world’s leading transaction platforms, will be integrating cryptocurrency payment options.
When asked about the future of crypto regulations, Pierce said, “It’s not only that there have been calls for clarity for some time and that a new administration brings the chance to take a fresh look, but it also is a moment where it seems others in the marketplace are also taking a fresh look”.
No One Wants Another XRP Debacle
As cryptocurrencies garner more users and continue to smash through record highs, regulators may deem additional oversight necessary. This can affect stakeholders throughout the ecosystem, companies, project founds, partners, investors, traders, and more.
The potential trouble with the lack of regulation is being experienced by Ripple Labs and two of its executives. Charges recently filed by the SEC accuse the parties of selling over $1 billion worth of unregulated securities. They state that XRP is a security and its lack of regulatory compliance is illegal.
The SEC has made definitive statements about Bitcoin and Ether. It deems neither a security, but has not provided much insight outside of those two assets.
This has heavily irritated some XRP investors, claiming that the SEC had over seven years since XRP’s creation to bring this up, and that bringing it up now only harms investors. Since the announcement, many trading platforms and XRP partners have removed the asset or temporarily ceased operations with the network.
We may not know precisely how this suit will turn out. However, it shows that the lack of clear regulatory oversight leads to massive blunders. These may hurt every day traders when it comes to an end. Although it has since begun to recover, XRP saw a gigantic price decrease following the charges.
Potential Wall Street Collusion Pushes the Masses Towards Decentralization
The debauchery displayed by Wall Street exposed another fundamental reason for enhanced cryptocurrency regulations. Following an uprising from a community of Redditors who decided to fight back against institutional investors, many exchanges shut down trading, stopping the ability to purchase specific stocks and directly benefiting the elite shorting the market.
This unadulterated display of greed has shown a whole new generation of investors just how corrupt the financial ecosystem is. They must do something to change it. With the growth of decentralized exchanges, and some hoping to one day host and trade regulated securities, more clarity is needed on how to run operations. Hopefully, Pierce and her fellow regulators can implement user focused regulations that provide a safety cushion to stakeholders in the industry.