A ‘Trojan Horse’ Crypto Regulation From SEC Is Here As Bitcoin, Ethereum, BNB, Solana, Cardano, XRP Prices Rebound
Crypto Currencies have created a wave of changes that has enforced digital currency adoption. But with the current turn of events, Bitcoin and other crypto currencies ended a disappointing week on a high note.
Today’s bitcoin price increased by 3.2%, Ethereum by 8%. BNB increased by 3.8%, Cardano by 2.8%, XRP by 2.7%, and Solana by 8.5%. While this surge has been great news, the SEC is planning to surprise crypto markets with a “Trojan Horse” regulation.
SEC On Trojan Horse For Crypto Market
Authorities have been searching for a solution to adopt and impose regulations for the Crypto market. According to the news shared by Forbes, the SEC issued a seemingly unrelated and long 654-page plan that guided on ways to regulate “Treasury markets platforms” during the last week.
While the proposal does not specifically mention crypto currency, the new rules would allow regulators to investigate crypto platforms and even decentralized finance (DeFi) protocols.
Gensler informed that DeFi platforms are not exempted from market regulations. Gensler shared the same in an interview with Wall Street Journal last year that suggested, “Even though they are decentralized, with no central entity in charge, DeFi projects that reward participants with incentives or digital tokens could enter territory that is subject to SEC regulation.”
SEC On The Policies And Regulations For Crypto
The SEC proposed mainly three things here:
- Extend Regulation ATS to alternative trading systems that trade government securities, NMS stock, and other securities.
- Extend Regulation SCI to ATSs that trade government securities.
- Amending SEC rule regarding the definition of an exchange.
This proposal would require those platforms to register and be regulated, resulting in greater resiliency and access in the Treasury market.
The Road Ahead Of Us
Insiders in the blockchain industry, trading platforms, and other stakeholders will have a 30-day window starting January 26 to comment on the new SEC proposed plan.
The SEC will hold another vote after the comment period to reach a final decision. The amendments could give the SEC new powers to regulate crypto and DeFi platforms if they are passed.