The cryptocurrencies will be regulated!
In 2018, good news emerged for all those who invest in the world of cryptocurrencies, as the US Securities and Exchange Commission (SEC) announced that it regulates cryptocurrencies and digital assets as securities. But, how does this regulation influence today?
This announcement had a great positive impact on the crypto market for those who have already invested in it and for those who are thinking of entering this new world. This regulation will allow more and more people to invest and mine cryptos safely.
Cryptocurrencies are a form of digital currency that uses cryptography for security. They can be used for various purposes, such as buying goods, sending money, etc.
The announcement by the SEC was made out of the concern and for the protection of all those who invest in the cryptocurrency market. They stated that the biggest concern of not having a regularization was that the crypto markets are "vulnerable to manipulation".
However, there are many reasons why the SEC decided to get involved in regulating these digital assets, mainly due to their recent growth and popularity.
The SEC, as we mentioned before, seems especially concerned about how easy it is for people to invest in these coins without knowing how they work or what they do.
But the question here is, what were the intentions of this regulation?
Over time, technological advances advance by leaps and bounds and that not only affects new technologies but also revolutionized the digital market and new financial assets. Just as, digital assets appeared as an opportunity to “reinforce the leadership of in the global financial system and in the technological frontier".
So, are we on the way to a digital dollar?
In addition to the measures already mentioned, the Biden administration has suggested continuing to investigate the possibility of issuing a cryptocurrency backed by the United States, a possibility that the Federal Reserve is already studying.
According to the White House, digital assets have seen tremendous growth in recent times. Through February 28th, 2022, just bitcoin was up 9.34% going up to $42,374.54, while the second-largest cryptocurrency Ethereum was up 7.33 % to $2,263.14.
So, the questions for all our readers should be... Do you agree with the regularization of cryptocurrencies?