Regulatory Series on Cryptocurrencies: Regulatory Updates on Crypto-Industry

Back in 2017-18, the entire Cryptocurrency and ICO industries have seen in a continued struggle ever since the U.S. SEC (Securities and Exchange Commission) declined the Winklevoss twins’ and other attempts of launching a bitcoin ETFs.

The SEC has finally published the much-awaited regulatory ‘Framework for Investment Contract Analysis of Digital Assets.’ While an important development in detailing the guidelines for issuing crypto-assets in compliance with federal regulations, the framework doesn’t appear to be exhaustive as cited by the SEC.

“The framework is not intended to be an exhaustive overview of the law, but rather, an analytical tool to help market participants assess whether the federal securities laws apply to the offer, sale, or resale of a particular digital asset,” as per the publication details.

While the United States regulator, the “crypto mom”, the commissioner Hester Peirce made remarks on her apprehensions about the major hindrance for the entire cryptocurrency industry. Wherein, Peirce stated at the Securities Enforcement Forum in East Palo Alto, California on May 9th, the SEC’s hesitance to provide clear guidance would hold back its growth.

During the decision making on issuing tokens represented an offering of securities, majorly contemplating that securities laws would not cease to apply only upon the evolution in the industry, according to Peirce.

The SEC as a regulatory watchdog should provide better clarity on the guidance to the industry players on how to comply with the law, which is still unclear, she added.

Pierce compared the US regulator's approach to Jackson Pollock splashing paint across a canvas.

“We should not be trying to guide innovation, but we also should recognize that we cannot stop it and embrace the potential for positive change that innovation offers. Our silence is likely to simply push this innovation and any attendant economic growth into other jurisdictions that have done their work and provided clear guidelines for the market participants to follow,” she further noted.

BTCUSD has continued its bullish streaks consecutively 4th day in a row with intensified buying momentum, the pair has been inching towards a fresh 6 month highs, currently trading at around $6,400 levels (Bitfinex).

Currency Strength Index: FxWirePro's hourly BTC is flashing at 62 (bullish), while the hourly USD spot index was at -68 (bearish) while articulating (at 12:24 GMT). 

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