The notorious SEC continues its rampage of suing all crypto companies, this time in the form of deciding that many of the leading cryptocurrencies including Cardano Solana and Polygon are considered a security and therefore should cease to exist.
There might be another explanation as to why this crackdown is happening. On the surface it seems that the government would like to keep its control of the financial order and therefore overlooks the benefit of crypto and is trying to shut it down.
But what’s if they do see the benefits of crypto and in the long run they do want to capitalize on the opportunity. What’s if they don’t believe that their claims will be upheld in court and it’s just a stalling tactic.
A recession is what the government is trying to avoid at all costs. They need investors and regular people to keep their money in traditional finance and markets. We’ve seen in the past that when there is uncertainty in the traditional market some have ventured to the crypto market.
Now the government cannot afford investors moving from traditional markets and investing in crypto they need the money to stay where it is to stabilize the market. So instead they create even more uncertainty in the crypto market than there is in the regular market by suing all major crypto companies, this leads people to doubt and fear and withhold or withdraw from crypto.
In other words whether or not this is being done intentionally, it is beneficial to the government to create extra turmoil in an already volatile market, in order to keep investors in traditional financing and keep the economy stable.