Former SEC Official’s Crypto Warning: The Regulatory Onslaught Is Just Beginning
There’s no doubt about it, the crypto space has been on a rollercoaster ride this year. And just when you thought the worst was over, there was more bad news. Former Chairman of the United States Securities and Exchange Commission (SEC), Jay Clayton, had some chilling insights into what he foresaw as the future of crypto regulation.
The Cold Hard Truth
Clayton expressed that the regulatory environment surrounding cryptocurrency is ‘heating up’ and the world will soon face the sternest regulatory framework on crypto ever. He stated that the US is leading the charge on that front and it looks like, in the long run, when it comes to regulation, it will be become increasingly difficult to turn a blind eye and go un-noticed.
Where Things Stand Right Now
The SEC, who were some of the first to enter the crypto arena, have firmly cemented their position, making it clear that the digital currencies are subject to securities regulations. This means that crypto companies, who want to offer services related to cryptocurrency must register with the SEC.
Clayton’s ominous warning seemed to hint at worryingly more thorough, and more intrusive regulations as the year progresses.
He specifically cited stablecoins, which have become popular in recent years, as a possible target for regulation. His implication being that regulation will no doubt step into the fray soon, if it hasn’t already.
What You Should Do
It’s becoming increasingly difficult to ignore the writing on the wall, and if you’re serious about banking or doing business with cryptocurrency, you need to be informed and aware of all the regulations and laws that apply.
Here are some points worth keeping in mind:
- Understand the laws that apply. With stringent laws now in place, ignorance of the laws no longer cuts it. Research each regulation carefully and make sure you stay within the bounds.
- Consult a legal professional. Given the complexity of the crypto space, it’s always worth seeking the help of a professional legal representative to make sure you’re staying compliant with the law.
- Review the regulations regularly. As with any market, regulations are constantly changing and being updated, so make sure you’re staying informed of all the latest developments.
It’s no laughing matter, but it’s certainly true that with great power comes great responsibility – as far as regulation and crypto is concerned, the two go hand in hand. So be sure to do your due diligence and you’ll be good to go. Good luck!
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