These Projects May At Risk As SEC Is Targeting Crypto, Says Coin Bureau
As regulators are coming for crypto and the SEC is now targeting almost every cryptocurrency except for Bitcoin (BTC), top crypto strategist Mike Jenkins from Coin Bureau shares about the current regulatory situation and projects that SEC may be targeting.
SEC and Cryptocurrency
The Securities And Exchange Commission or SEC is a government agency in the United States created in 1934 in response to the Wall Street Crash of 1929 which caused The Great Depression.
“Naturally, the purpose of the SEC is to help prevent a crash like that from happening again,”
The SEC is headed by five commissioners. One of them holds the role as chairman who acts as the de facto spokesperson for the SEC among other things. For the time being, of the five, only Elad Roisman, Hester Pierce, and Gary Gensler (SEC’s chairman) have commented about cryptocurrency. Both Elad and Hester have favorable views of the industry.
According to the analyst, in an online event hosted by the Aspen Security Forum, Gary noted that most cryptocurrencies need to be regulated, and paid specific attention to stablecoins and DeFi.
Which Cryptocurrencies Will The SEC Target And When?
Jenkins suggests that the good news is it’s unlikely that the SEC will clamp down too hard on cryptocurrency any time soon: “That’s because it doesn’t currently have the right or the resources to engage in any overreaching enforcement actions,”
However, he says that this will change when politicians return from their recess in mid-September.
Jenkins also points out the issue here is that what constitutes a crypto broker is not clearly defined and this makes it possible for regulators to pick and choose which crypto projects get a pass and which ones get wrecked. Yet, it looks like the SEC will target any cryptocurrencies and projects that compete with banks. This means DeFi, crypto CeFi, stablecoins, and more.