In recent cryptocurrency news, Bitcoin and the other cryptocurrencies have experienced a surge of late. All of them are off of lows that took away approximately 60% of their value from their 2017 fourth-quarter highs. The market seems to be roaring back, and everyone is looking for a reason behind this new surge.
At the same time in blockchain news, the Securities and Exchange Commission has decided to try to shut down the future technological advances of the most important technology of the past 10 years. This is in the face of past repulsions of government interference. Maybe the good people at the SEC simply don’t have anything better to do.
The Massachusetts Institute of Technology recently held a blockchain conference that included the SEC. incredibly ludicrous actions such as defining top cryptocurrencies as securities. Specifically, Ethereum and XRP are on the chopping block, and other currencies may follow. The SEC claims that activities from the underlying companies supporting these two efforts mimic the so called “common enterprise,” which defines it as a security under US law. As a security, both currencies would then be defined as offering a profit expectation from the labor of others.
In short, this regulators are trying to make a footprint in the world of cryptocurrency. They do not seem to be going away, and everyone is looking at how their presence will affect the overall validity and profitability of the market. It is possible that the presence of these regulators will stop short the efforts of up-and-coming cryptocurrency efforts that should actually be defined as securities.
Overall, if regulators are looking to act as watchdogs over the cryptocurrency industry, they should do so only relating to the rules of the market as it has been defined by its proprietors. It seems horribly disingenuous for these people to come in as Johnny-come-lately’s and try to define a market that has already defined itself.