Biden’s SEC is ready to regulate cryptocurrency

[Nathrixxx]

The Securities and Exchange Commission (SEC) — led by Gary Gensler, who taught a class on cryptocurrency at MIT — is trying to make the case that it can and will regulate whatever cryptocurrency investment schemes it decides fall under its purview. The relative newness and rapid expansion of the cryptocurrency industry have put it in a regulatory gray area. The Internal Revenue Service (IRS) classifies crypto as property. The Commodity Futures Trading Commission (CFTC) considers crypto to be a commodity. And the SEC has said that digital assets “may be securities, depending on the facts and circumstances.” A security is a financial asset that can be traded, like stocks and bonds, and which is governed by several laws designed to prevent fraud and protect investors.

The SEC appears to have decided that an upcoming offering from Coinbase, the largest cryptocurrency exchange in the United States, meets its definition of a security. And it’s showing that it will step in and regulate it accordingly — and, by extension, regulate the rest of the crypto finance industry more assertively.
https://www.vox.com/platform/amp/recode/22663312/coinbase-sec-cryptocurrency-bitcoin

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[Gyfts]

Read his twitter chain here - https://twitter.com/brian_armstrong/status/1435439291715358721

Large governmental institutions in charge of financial systems trying to curb crypto currency growth, not shocking to say the least. He mentions there were some other crypto currency based lenders already, but the SEC defined a crypto loan as a security, which doesn't make sense. Binance in the UK was banned by a regulator as well so the intentions are clear - government will do what it can to stop mass adoption of crypto.

[BADecker]

Any time anybody wants to take his crypto operation out of the control of the SEC, here's all he has to do.

Take his crypto app or client, and on the send/receive pages, make a stateme4nt that the particular trade3 is a Private Membership Association trade. If the joker on the other end doesn't agree with this, then the trade doesn't go through.

Practically speaking, there would be a little more to it... like setting up a PMA statement, and making each trade a new PMA, and getting such an agreement ahead of timer from the sender/recipient.

If the Bitcoin Devs made a separate client with this stuff in it, users would be entirely outside of government oversight when they used it.

[OgNasty]

Biden’s team is ready to regulate everything. If there’s one thing they want to do, it’s have complete control over everything you do. They want to regulate every dollar you spend, control your healthcare decisions, close small businesses, and get everyone working for massive companies in bed with the government or on universal income. Then they can make sure recessions are a thing of the past and have total control over their tax deposits with absolutely nothing but a decentralized currency and wealthy self sufficient individuals to stand in their way.

[suzanne5223]

According to what I read about this topic. The SEC was planning to create the cryptocurrency regulation as a way to provide investors the needed security but they can only regulate centralized exchange, crypto investment firm, and lending site.

Read his twitter chain here - https://twitter.com/brian_armstrong/status/1435439291715358721

Large governmental institutions in charge of financial systems trying to curb crypto currency growth, not shocking to say the least. He mentions there were some other crypto currency based lenders already, but the SEC defined a crypto loan as a security, which doesn't make sense. Binance in the UK was banned by a regulator as well so the intentions are clear - government will do what it can to stop mass adoption of crypto.

I also believe some governments will do everything in their capacity to delay the mass adoption of crypto because they can only stop what they can control but the issue of Binance banned in the UK is different because the FCA ban on Binance is a different reason.

1) FCA always bans companies that don't register on their platform.
2) They don't support the derivatives trading services of Binance due to the risk involved.

[teosanru]

They want their cuts basically, trillions of dollar is being pumped into cryptocurrencies and the biggest problem that these governments are having is they can't tax it and take their cut from this, HODLers are making tons of money, NFTs are being sold at such exorbitant amounts and no Government around the world is able to crack the code as to how they would regulate cryptocurrency when they can't even detect transactions and owner of the transactions, Probably banks could also be the ones that are lobbying governments to take such actions so that they don't go out of business and funds as people switch to cryptos as a new investment option. But no matter what they say, regulating the crypto space today is too difficult or nearly impossible for one country alone. When even the corporates and the multimillion hedge funds are switching to cryptos, no one who is in power would want to be the bad guy banning this.

[Natsuu]

In my country, there is this tax regulation with regards to crypto that seems kinda fair...

They will tax transactions that will involve crypto-> business payments and vice versa. That really seems fair given that there are giiven tax regulations with regards to products that are already made. Though they won't tax the transactions of trading and investments.

[PrimeNumber7]

I think the OP is mischaracterizing what the SEC is doing. They are threatening litigation if Coinbase offers a particular product, due to the product’s violation of securities laws, but they are unwilling to discuss exactly how the product violates the law, preventing Coinbase from being able to modify their product in order to comply with the law.

Basically, the SEC does not want Coinbase and DeFi in general to be able to complete with the banking ecosystem. They just won’t allow it. No discussion, no explanation as to how laws would be broken. No avenue for Coinbase to remediate any violations. 

[libertasbella]

Biden’s team is ready to regulate everything. If there’s one thing they want to do, it’s have complete control over everything you do. They want to regulate every dollar you spend, control your healthcare decisions, close small businesses, and get everyone working for massive companies in bed with the government or on universal income. Then they can make sure recessions are a thing of the past and have total control over their tax deposits with absolutely nothing but a decentralized currency and wealthy self sufficient individuals to stand in their way.

Amen. And those wealthy, self-sufficient individuals will quickly learn they had better bend the knee to the New World Order or wind up as "suicides."

[SmokerFace]

The popularity and importance of Bitcoin are not unknown to anyone and also cannot be neglected. It has become a need hour to make some rules and regulations for the recognition of Bitcoin as a Commodity. I think The Securities and Exchange Commission (SEC) must formulate some regulations for Bitcoin as well as it has become a widely expended commodity.