Is Crypto Regulation an Oxymoron?
These days, nothing has managed to create a stir as big as cryptocurrency has. However, when it comes to regulation, its allure may become part of its downfall. After all, the anonymity was what drew people to crypto in the first place. As markets begin to crack down on crypto, we should see a seismic shift within the coming months and years. And as the situation evolves, here are some of the biggest factors poised to cause the tectonic plates of crypto to move.
The Asian Markets
Although the west has been relatively slow to regulate ICOs (Initial Coin Offerings), China has been fast to step in and create strict guidelines. In fact, as of today and for the foreseeable future, the powerful nation has completely banned ICOs. And each time that a powerhouse like China cracks down on crypto, the altcoin markets tend to respond. Those who hold everything from BTC to Litecoin will usually see the repercussions in their digital wallets. For those who tend to be more conservative with their investments, this may serve as a real turn-off. If people don’t invest in crypto, then the validity of the entire system may even crumble.
The SEC’s Actions
Up until now, cryptocurrency has enjoyed very low regulation in the United States. But the SEC (Securities and Exchange Commission) may have something to say about crypto very soon. Recently, a debate has been heating up as to whether or not some cryptocurrencies can be classified as securities. Just a few months ago, the SEC released a statement echoing their earlier stance that some crypto coins may indeed fall under the securities umbrella. How this situation plays out may carry a huge impact on the future of ICOs and especially utility tokens.
The Eos Conundrum
Within the past few weeks, the utility token that has been drumming up the most interest from regulators happens to be Eos. And it’s not just being hotly debated in the world of financial regulation. In fact, a recent L.A. crypto summit at WeWork—featuring founders from VEZT and a few other crypto experts—led to some passionate opinions being voiced about the future of Eos.
Crypto Enthusiasts Swoon at Wyoming Decision
Obviously, it is going to take some time for all of these details to be sorted out. Cryptocurrency didn’t just crop up overnight, and the answers to these issues won’t be determined any faster. A recent Wyoming decision, decreeing that utility tokens should not be regarded as securities, was seen as a win for the nascent community. However, it is anyone’s guess as to whether or not federal regulators will act similarly.