Sauron's eye recedes: Bitcoin fades from US stock market policeman's agenda

By: Bharggavi Ssayee

Sauron's eye recedes: Bitcoin fades from US stock market policeman's agenda

June 15, 2021 4:33 PM

An overloaded agenda for Bitcoin and cryptocurrencies


Cryptocurrencies are not included in the SEC's spring and summer regulatory program, which was released on June 11, 2021. SEC Chairman Gary Gensler recently hinted at imminent regulation of crypto exchanges. for the benefit of their users.


The SEC ultimately focused on developing and finalizing a legal framework for Special Purpose Acquisition Companies (SPACs), short selling disclosures, money market reforms, and gamification of trading platforms. trading like Robinhood and other topics.


For lawyer Gabriel Shapiro, however, the regulations regarding this gamification partly concern cryptocurrencies.


Gensler said in May 2021 that the development of cryptocurrency regulations should be led by Congress. He pointed out that "at present there is no market regulator around these cryptocurrency exchanges and therefore there is no real protection against fraud or manipulation." The SEC continues to keep an eye on cryptocurrencies, however. On June 10, 2021, she warned that BTC futures contracts are "a highly speculative investment". A May 2021 report from Cornerstone Research further reveals that the SEC has imposed more than $ 1.7 billion in penalties on crypto companies.


Bitcoin in gray area

The SEC has authority over the regulation of certain cryptocurrencies considered to be securities - hence its legal standoff with Ripple (XRP) - but, cryptos like Bitcoin are outside its purview. Bitcoin and other cryptos would be sort of in a gray area.


If crypto-exchanges should not face new rules issued by the SEC this year, cryptocurrencies in general are still in the government's sights. US Senator Elizabeth Warren wants to stop Bitcoin once again accused of being too polluting.


The SEC may not be in a rush to tackle cryptocurrencies, but the flip side is that cryptophiles will also have to wait before they see the birth of the 1st crypto ETF in the United States. Given the Biden administration's stance on cryptocurrency, the legal ax will unfortunately fall for Bitcoin and its cadets, it's just a matter of time.