Sirwin
Sirwin

What Does the SEC Want from Crypto?

By idiosyncratic | Idiosyncratic Crypto | 23 Jun 2023


The SEC drama is getting more and more ridiculous! The policymakers decided to fight against crypto whereas there is a huge opportunity to utilize the growth of the crypto ecosystem by welcoming the start-ups and regulating crypto exchanges to secure both parties.

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The crypto ecosystem has suffered a lot from the discussion over the classification of the cryptocurrencies whether they should be called as security or commodity. As far as what we see, the SEC does not want cryptocurrencies that have a Proof of Stake consensus model and the token distribution is supposed to be different from a security.

Gary Gensler started to support the idea that there is no need for cryptocurrencies as USD, EUR, or other fiat currencies are already "digital". Unfortunately, he is playing the clown 🤡 for some reasons. Though when he became the chairman of the SEC crypto ecosystem thought his policies might be friendly, he changed his mentality and decided to harm the ecosystem with no logical reason.

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Cryptocito Twitter

The first attempt was to destroy the realm of Binance. Some crypto influencers assumed that Binance has never been an ideal leading exchange for U.S. policy makers. However, a surprising thing happened the day after. Coinbase, though it is a perfectly regulation-friendly service provider, was on target, as well.

Now look at the diagram and see the doubtful blacklist of the SEC.

What Pushes the SEC to be Hostile: REVENGE

What comes to your mind when I say the biggest crypto exchange rug-pull in the recent history of crypto?

Everyone understands that we are talking about FTX!

The collapse of FTX was the failure of the policymakers of the SEC as they were not able to "protect" the citizens of the U.S. though the case was too likely. FTX was using Alameda Research to use the funds of exchange in risky positions. In the end, the funds, the reliability of the SEC and the dreams of crypto people collapsed altogether.

And the pace has picked up since digital asset exchange FTX rapidly collapsed in November due to alleged criminal mismanagement. Prosecutors allege that the exchange commingled customer funds with its sister trading firm, Alameda Research, to make risky bets.

All in all, we have unsuccessful SEC operations regarding the crypto ecosystem. In another fraud that may affect the citizens of U.S, it would be the end of the game for the SEC, as well. Their past failures push Gary and his team to be more offensive.

Those who were affected by the collapse of FTX have the right to ask the question that where have the SEC been while their funds were sued by Sam and his super successful trader team. Gary has nothing to say but he has some ideas to take the revenge.

Staking Operations are on Target

Another important detail of the hostile attitude is that the staking offers by the centralized exchanges are seen as inappropriate by the SEC. The staking mechanism is an inseparable part of many blockchains as the second most popular consensus model is totally based on that.

With this recent move, the chairman of the SEC clearly showed that there is no future for crypto in the U.S. This hard-learned lesson costs us a lot but it will never be as much as it will be for the current policymakers. Turning your back to crypto might be one of the worst "financial advice" they can ever have.

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idiosyncratic
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Crypto-Blogger 🖊Blockchain Gamer 🎮 https://read.cash/@idiosyncratic https://noise.cash/u/idiosyncratic1 https://leofinance.io/@idiosyncratic1


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