Few words inspire fear and frenzy in the hearts of crypto lovers like regulation, government, subpoena, and big banks. All of these are triggers tied to paranoia. The worrying feeling that everything will disappear overnight because of the big banks or government setting out to destroy what the crypto community has worked so hard to create.
While the argument that crypto is threatening big banks supremacy is valid based on bank financial reports stating it was affecting their bottom line, it’s not that they want to squash it entirely. The SEC steps toward bringing about regulations aren’t an outright attempt to rid the world of blockchain technology and investment.
Put simply, it’s an attempt to curtail the insanity of it while making it possible for big money to enter. Manipulate the price, damage public support, and then buy up all that’s possible. But, for that to happen, there need to be regulations in place so that traditional investors would be able to be willing to participate.
Jim Newsome, the former head of the CFTC, posits that the bubble of cryptocurrency is unlikely to burst without traditional investors playing a role to stabilize prices and value.
It’s possible that the United States is taking a keen interest in setting the standard of what will and won’t be accepted, but with the volatility and the complex community its based in has proven difficult. A meeting with Paul Atkins & the SEC to discuss next steps was postponed potentially for lack of data/organized action.
If thing go well, and traditional investors get involved, much-needed money will be injected into the market. A combination of reasonable regulations with an influx of traditional investment money would usher in an unprecedented level of bullish progress.
Whether that will happen or not in the next few months remains to be seen…