[2018-03-26] US Regulators Want Crypto Exchanges to be Like Stock Markets

[Terraformer]

The SEC believes that cryptocurrency exchanges could improve by implementing similar principles of stock markets.

Cryptocurrency Markets Resemble "Wild West"

Many regulators, experts, analysts believe that cryptocurrency markets still lack proper oversight and regulations. According to a recent report by VentureBeat, senior U.S. Securities and Exchange Commision (SEC), Brett Redfearn, stated that the current state of cryptocurrency markets resemble the “Wild West”. The Securities and Exchange Commission (SEC) is mainly concerned with cryptocurrency market manipulation, cybersecurity, fraud, money laundering and terrorist financing. Redfearn stated in the article:

I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading,

But the SEC isn’t just only concerned with cryptocurrencies and cryptocurrency exchanges. The SEC is also keeping a close eye on initial coin offerings (ICOs) and token sales.

SEC Concerned Over ICOs

In the past, the SEC stated multiple times that investors should be very careful when they invest in ICOs and token sales. The US regulatory agency is worried that most ICO tokens may be classified as securities and don’t comply with the regulations that traditional securities do. Redfearn noted:

There are no registered exchanges, there are no registered ATSs (Alternative Trading Venues) trading any of these products

He also added:

I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading,

Some cryptocurrency experts believe that the cryptocurrency and ICO market will be better off once regulators create an appropriate regulatory framework. Proper regulations and safety measures could also give institutional investors more confidence and motivation to invest in the cryptocurrency market.

http://bitcoinist.com/us-regulators-suggest-that-cryptocurrency-exchanges-should-have-similar-principles-to-stock-markets/

[Harlot]

This is a fair thing to do by the U.S. Government, when the time comes that their citizens know that is is more easy to create a cryptocurrency exchange account compare to opening a stock brokerage account they will choose to trade in the cryptocurrency market. Also this can be their way of screening all of the ICOs entering the US market, the screening process will guarantee that their are no security tokens that will turn out to be a scam, their registration with the SEC will verify their existence as well as their legal capacity. This is a step up for their upcoming market.

[Mpamaegbu]

At least this should provide a direction for the people rather than various global governments ignorantly clamping down on cryptocurrency. We can say the gains of the G20 summit is already making manifest. Let the American government put it out their and let the citizens be the choosers. Let the Chinese follow suite if they so much trust the Yuan to have an upper hand against cryptos. This should be a test ground.

To be frank, I am not perturbed at all. I believe the criticism and condemnation cryptocurrency face now were what forex trading faced at its beginning. But now we know better and how a trillion market cap it has got to.

[Alex077]

After the introduction of Bitlicense, 70% of US crypto-currency companies have closed or moved to other jurisdictions. After tightening of the ICO rules, many exchanges, including the largest ones, refuse to work with US citizens. As a result, only Gemini and Coinbase will stay, the rest will leave.

[Qartersa]

The SEC believes that cryptocurrency exchanges could improve by implementing similar principles of stock markets.

Cryptocurrency Markets Resemble "Wild West"

Many regulators, experts, analysts believe that cryptocurrency markets still lack proper oversight and regulations. According to a recent report by VentureBeat, senior U.S. Securities and Exchange Commision (SEC), Brett Redfearn, stated that the current state of cryptocurrency markets resemble the “Wild West”. The Securities and Exchange Commission (SEC) is mainly concerned with cryptocurrency market manipulation, cybersecurity, fraud, money laundering and terrorist financing. Redfearn stated in the article:

I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading,

But the SEC isn’t just only concerned with cryptocurrencies and cryptocurrency exchanges. The SEC is also keeping a close eye on initial coin offerings (ICOs) and token sales.

SEC Concerned Over ICOs

In the past, the SEC stated multiple times that investors should be very careful when they invest in ICOs and token sales. The US regulatory agency is worried that most ICO tokens may be classified as securities and don’t comply with the regulations that traditional securities do. Redfearn noted:

There are no registered exchanges, there are no registered ATSs (Alternative Trading Venues) trading any of these products

He also added:

I’m not sure all of the rules would translate over, but there are certainly principles that exist in that space that we have to then apply in some respect to what’s happening with crypto-asset trading,

Some cryptocurrency experts believe that the cryptocurrency and ICO market will be better off once regulators create an appropriate regulatory framework. Proper regulations and safety measures could also give institutional investors more confidence and motivation to invest in the cryptocurrency market.

http://bitcoinist.com/us-regulators-suggest-that-cryptocurrency-exchanges-should-have-similar-principles-to-stock-markets/

If this is what happens to cryptocurrencies in the near future, do they think people will still use cryptos? I do not think so. Surely the number of people who transacts, does business or invests on it will decline, knowing for a fact that it is no different from regular stock markets, traditional fiat currencies, among others. Remember it was the EDGE in the feature of cryptos that made people want it. Let us not take away that fact. Hence, to regulate it in the same manner stock markets are regulated would make cryptos a mere surplusage/duplicate of something that is long-favored by governments. I think then such act would do more harm to cryptos rather than the good it intends.

[matuson]

The problems start in all areas of crypto. In the beginning started to choke ICO. I am confident that this was done at the initiative of the us stock market. They are very afraid of competition. Then joined the bankers and the problems started with the accreditation of the exchanges. What's next? Maybe it's time for miners and developers to agree and create conditions for bitcoin to be used as a currency?