It is often difficult to understand regulatory actions and changes in the structure and size of the regulatory units. In a sector that develops rapidly like a crypto currency, it’s even more challenging than usual. Sometimes it is not certain whether the main new development will be reinforcement or lead to bust – and both directions can be convincing arguments.
If you are planning a significant crypto investment, it is crucial to understanding regulatory displacements and their implications. So, here’s the latest big change and what you need to do about you to stay ahead of the game.
According to the report New York Times Posted on February 4, Securities Commission (SEC) He will reduce his group to implement the cryptocurrency in accordance with the preferred policies of the new presidential administration. It is unclear whether any or all the activities originally assigned to the group will resolve the newly established crypto working group that created the new administration as part of the initiative.
For now, it is certain that SEC’s exercise of surveillance over the cryptocurrency sector was set up to become even weaker than it was before. From mid -2013 to the end of 2024, SEC carried out only 207 actions related to the Crypto Currency, including litigation and other administrative procedures.
However, this new development has some important consequences for investors. Proponents of a reduced unit in SEC include those who claim that the cryptocurrency sector will be able to grow faster with fewer regulatory obstacles. Although this could be true for questions such as approval of new types of financial derivatives a little faster than before – or approval at all – the argument begins to decompose when the need to protect investors from direct illegal activities is considered, so they are that they are confident enough Combine your capital for cryptocurrencies.
On chains like Saltworks (Crypto: Salt) and Ethereumwhere false activity and direct fraud For years has been tormented by investors, experiencing even less implementation is unlikely to change the status quo for the better.
On the other hand, it is crucial to note that it is likely that the situation is in many subsectors on these chains to get worse, especially for meme coins. The vast majority of mema coins are already direct attempts to spend money from the investor within a few minutes from the commission of capital. And serious investors do not deal with these areas for other reasons except the lack of implementation.
Although legal protection in theory would reduce many risks of this property, they are still basically incredibly unstable, risky and without a strong relationship with any fundamental value.
So, there is no necessarily a new wind here, even if it is certainly not happy. Expect the edges of these ecosystems as being as extractive and dangerous as ever.
A large and older chain like Bitcoin,, (Crypto: BTC) It is already deeply integrated into the traditional financial system and is at least partially covered by the protection affecting the sector. But it is not clear that less SEC will change anything at all.
Investors can buy a coin directly in their retirement accounts or intermediaries through funds that have trade on the Stock Exchange (ETFS), which are still quite strictly regulated. Despite their unreliability, the exchanges of cryptocurrencies still have to store and distribute user coins at demand; However, weaker regulations make them less attractive to investment spaces.
Finally, those who are technically prone can buy it and keep it directly on Blockchain, and it’s not like a sec doing much to break up to frauds that include false blockchain or other stealing vectors.
For most investors, slowing down the Cryptumellite Units SEC will have no tangible influences, and it may never.
The main crypto currencies such as Solana, Bitcoin and Ethereum have been established enough, despite the presence of some problematic activities on their chains, they also have strong and multiple investment thesis that require nothing on the path of regulatory protection to continue playing. These theses will remain true, so the coins are still worth buying.
Just be aware that there is even less protection and even less hope in salvation if you lose money by investing in the fraud of fraud on their chain.
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Alex Carchida He has positions in Bitcoin, Ethereum and Solana. Motley Fool has positions and recommends Bitcoin, Ethereum and Solana. Motley Fool has disclosure rules.
