Now while we wait for the next market crash to come we get to sit and speculate which cryptocurrencies the Securities and Exchange Commission or SEC will Target in the next two weeks as its fiscal year comes to an end and the regulator engages in more important actions to justify its budget.
SEC chairman Gary Gensler has made it clear on many occasions that the only cryptocurrency that’s safe from the regulator scrutiny is bitcoin’s BTC.
As far as Gary and the Gang are concerned almost every other cryptocurrency is a security and therefore requires strict regulation.
As we’ve seen with XRP any crypto that’s targeted by the SEC will be delisted from cryptocurrency exchanges in the United States and the company behind the crypto project along with its Founders will likely get hit with a large fine.
So far it seems the only thing that’s been protecting the crypto industry is the fact that there are too many coins and tokens for the SEC to regulate individually.
That’s why the SEC has apparently opted to go after crypto exchanges instead and we could see some serious enforcement actions there soon.
Even so the recent establishment of two dedicated crypto offices at the SEC along with the continued expansion of the regulator’s crypto-specific personnel suggests that we’re more than likely to see enforcement actions against individual crypto projects as well.
As it so happens the SEC’s number one crypto Target is stable coins which Gary somehow believes to be Securities even though there’s no expectation of profit to be had in an asset that maintains a stable value.
Unfortunately it doesn’t change the fact that the SEC is likely to go after stable coins at some point and this looks even more likely than ever.