Recently, the US Securities and Exchange Commission (SEC), has been tightening the noose on the cryptocurrency market more and more. Initial lawsuits against Ripple, and token issuer LBRY, have escalated into a battle against exchanges, staking, and even stablecoins in the form of BUSD. One well-known crypto blogger points out that the SEC may have a hidden agenda in these operations.
SEC at war with the entire cryptocurrency industry
In a recent Forbes column, a well-known crypto blogger, Emily Nicolle, addressed a very difficult and controversial topic. She highlighted the actions the SEC is currently taking and what the consequences could be.
Recent time for the Securities and Exchange Commission, has been a period of presenting cannons and targeting objects in the cryptocurrency arena. After Ripple and LBRY, it was time for Kraken, as well as Paxos. In the case of the last, the talk is of an indirect blow to Binance, the exchange that controls the stablecoin BUSD. Despite the fact that Binance is not a direct issuer of the coin, the SEC’s actions here, seem to be in the context of the platform, completely inadvertent. All of the aforementioned entities stand at the threshold of similar accusations. They concern the trading of unregistered securities.
Will banks take custody of cryptocurrencies?
With this, the US agency is pointing out the mistakes of the cryptocurrency sector and pointing out its weaknesses. These actions may favor banks, which, according to Emily Nicolle, stand at the threshold of taking custody of cryptocurrencies held by Americans. This is all due to newly unveiled digital asset protection rules. These solutions are allegedly backed by Wall Street. Faced with such a strong opponent, young start-ups that are “trying to reinvent finance” could experience serious problems.
Of course, there are also players in the market that are doing well and believe they are complying with all of the proposed regulations. Among them are Coinbase and Gemini exchanges, among others. While trading volumes remain low, the revenue generated by caring for crypto could prove crucial to their operation.
Create your own product, or acquire an existing one
Many big names in the financial world are investing in cryptocurrencies. In doing so, they use custody solutions such as Standard Custody from PolySign, Copper Technologies Ltd. and Zodia Custody. These entities inevitably gain a formidable reputation through these connections. By remaining technologically agile, they are on the radar of banks. Those looking to implement cryptocurrency custody solutions now have two options. Create a competing product, or acquire an existing one. Whatever they choose, there are many indications that the SEC is making it easier for them to take action.