US to Bring Law on Crypto


The new US President Donald Trump's crypto adventures continue. As you know, just before taking office, he issued a meme coin in his own name and his wife's name. He didn't talk much about crypto during his first day in office and afterwards. It was expected that he would sign a decree regarding crypto on the first day. I was one of those waiting, and thereupon, great panic began in the crypto world. There were even those who called back former Capital Markets Board Chairman Gensler. But on Tuesday, things started to settle down a little. Because on Tuesday, a bombshell news broke. The US is taking an important step towards legalizing crypto. SEC Deputy Chairman Uyeda announced a new crypto task force. America is trying to legalize crypto. As you know, they consider bitcoin as a commodity. That's why Bitcoin is not on the Capital Markets Board's agenda, it should be kept completely separate. However, there is a legal gap regarding all other coins.

Gensler was criticized a lot in the United States for this legal gap. Because Gensler was making some decisions by interpreting old laws because there was no law, and these were always taken to court, and the CMB of America lost most of those courts. Because there is no law behind. Now they say let's bring this law. Because when we don't bring this law, first of all, there is a lot of fraud. You always know this, you experience it. There have been examples of it many times, especially in meme coins, and on the other hand, innovation is actually blocked. Because when people don't know where a new technology fits legally, they are afraid to take action regarding that technology. In this context, let's make a law for this, and everything will be very clear. Let's clarify what is right and wrong, what is a crime and what is not. In this way, we can both cleanse the fraudsters from this system and the United States of America to become the real center of crypto.

As you know, this is Donald Trump's vision. It was announced on Tuesday that a team was formed within this framework. Commission member Hester Peirce will lead the task force. Senior advisor to the vice president Richard Gabbert and senior policy advisor Taylor Asher will serve as the task force's secretary general and chief policy advisor, respectively, and their goal here is to establish a new system that supports innovation while preventing fraud. So what does this mean for crypto? So we can say that crypto will be divided into two at first: cryptocurrencies that comply with these new laws issued by the Capital Markets Board and cryptocurrencies that do not comply with these laws. In other words, it is not possible to stop or block cryptocurrencies. Anyone can issue a crypto wherever they want. Because it is decentralized, but it can be documented whether the crypto that is issued complies with the US Capital Markets rules.

So you can think that there will be two types of coins. The first type is completely compliant with the law introduced by the US Capital Markets Board. So it is probably a type of coin that is considered safer by both large investors and banks, and seems safer from the investor's perspective, and on the other side, all the other coins. Some people may be interested in them, they like speculation, but they will know that when they trade in those coins, there is no law or protection behind them. I will try to explain what it means, how the Capital Markets rules protect the investor, and on the other hand, maybe trading in cryptos that are not approved by the CMB can be made a complete crime.

We don't know anything like that for now, but it will definitely be divided into two. Because I have been a stock investor in America for a long time, I can tell you clearly. Complying with the US Capital Markets rules is not an easy thing to do and most cryptos will not be able to do it. So what does the CMB rules bring to crypto, let's look at it a little bit. The fundamental change that will come to crypto will be as follows. If you want to get certified by the US Securities and Exchange Commission, if you want to get approved, you are subject to many strict rules. For example, first of all, we will know who the founders are. If these founders have previously been involved in a crime in the capital markets, they cannot be founders. We will know how many coins the founders have. We will know the wallets of the founders. The wallet addresses will be linked with the founders' names. Otherwise, we cannot know whether they have made a sale or not. As you know, if a stock is sold by the owners, partners of the company, then we know about it. We don't know about it in crypto, we will know about it.

Probably in the public offering of crypto, as they say, we are currently selling 20%, and in ICOs, we are keeping 10% for ourselves. All of these will be subject to strict rules and it will be possible to check whether transactions are really made in accordance with the rules in those wallets. Probably if we think of it as going public, after the crypto sale, for a while, for example 6 months, the general average in America, company owners will not be able to sell their own crypto. In this way, they will end the operations called Rug Pull, where they bring people in and then suddenly sell the shares in hand and pull the rug from under the people. All of these can be done again, but when they are done, we will know who is guilty of this. We will know all the wallet movements of the guilty party. Lawsuits may be filed against this person. Probably, some capital requirements, guarantee requirements will be imposed here again. Probably, just like a company sends its balance sheets to the CMB before going public and the CMB examines those balance sheets and thinks whether it is safe for this company to go public, this is how they try to look at it in America and of course every company has risks. If they want all those risks to be documented when going public and if something happens to the company shortly after going public due to an undocumented risk, then you can sue the people who prepared that document, all these will be working.

Of course, these types of rules will make it a bit harder to issue new cryptos, but at least we will be able to see who issued the cryptos that passed this approval, where their wallets are, how many cryptos they released to the market, what their program is to release new cryptos, what will happen to them if they do not do this, the first development is in this direction. The second development is that we go and buy and sell this crypto in certain markets. The places we buy and sell these cryptos right now are not brokers or dealers, they are just markets, let me give an example, Nasdaq, actually. However, we do not buy and sell my nasdaq shares directly through nasdaq, do we? We buy and sell them from brokers and dealers in between. As if we were doing it from investment companies of banks, they are brokers and dealers. Now, it is necessary to dwell on the difference between broker, dealer and exchange. When we move from exchange to broker dealer, broker dealers are also subject to the Capital Markets Board. What does this mean? Broker dealers are under legal obligations to protect and keep the money well by the investor entrusted to them. For example, you went and sent money to an investment institution and you do not want interest on your money, just let it stay there, if I see an opportunity for stocks, I will buy it. In this case, in the US system, that money does not stay in the safe of that brokerage institution. That money stays in a bank and even if the brokerage institution, that broker or dealer, goes bankrupt, you can go and get your money from the bank. Because it is your money. If you want interest, then you entrust your money to that institution. But this will be a great advantage. In this case, there is a guarantee behind it from the broker dealer to whom you entrusted that money. Because the law says that broker dealers cannot use the money they receive from you, that money is your money. However, they receive that money on exchanges and open a leveraged transaction for someone else. When that other party makes a mistake in a leveraged transaction, your money is also lost, so it's a complex world going on there. They won't let him here.

Secondly, broker dealers have to report. For example, if an insider, someone in the team that created that crypto, sells, the broker has to report it through this broker. Thus, we will know who made the purchases and sales. We will know which institutions bought and collected these cryptos. Because if you want to make a transaction from this type of broker and dealer, you as an investor have to give all your data there. Who are you, are you an individual or a company, you have to share all your information there. In this case, we will know who bought and sold the cryptos. We will know the whales. Because otherwise, it is not possible to make transactions with these brokers and dealers.

Now, this new world will definitely be slower than the old world. It will be a more expensive world. It will require a much larger legal infrastructure. Therefore, I think that once this gets going, when we reach a phenomenon called SPK-approved coins and SPK-unapproved coins, the vast majority of the SPK-unapproved ones will die. Because large funds will never invest in them. Just as the legal framework became clear after the Bitcoin ETF was launched, the money flows from large investors to Bitcoin increased. The same thing will happen here and most likely, a large portion of these smaller altcoins will die. Some people will still want to gamble. Meme coins will emerge, companies, institutions can also launch trust-based coins for different purposes, not just to make money but to create a community, to offer some advantages to that community and to raise a certain amount of money in return. I do not think that the American SPK will be a complete obstacle to this. But the world will be divided into two and I think the majority of investors will go towards this secure world.

So, which coins should I choose in this case? You need to choose cryptos that can comply with this type of major regulation, that can handle it, that have secure founders, that is, that have no dark stories in the past, and that are strong enough to cooperate with the Capital Markets Board of America in such a project. If you have an altcoin that does not comply with this, it is quite possible that the value of that altcoin will be zero after a while. Of course, this is not investment advice, but this is what I can see. When this law will come into force is a bit of a long process. I mean, Trump is a fast person, but this is a complicated law. Because there are many brand new things such as tracking wallets, integrating broker dealers into this system. On the one hand, they need to cooperate with the big players in the market here. They need to exchange ideas. On the other hand, the situation needs to be settled legally, it needs to be settled technologically.

This is a process, but it is certain that the Capital Markets Board of America is a system that works perfectly. It is debatable whether it always protects the investor super. But I am still happy that it is there as an investor and if they decide to place it, I don't know, it means that the crypto world will change completely in the next 6 months, a year, 1.5 years. Crypto exchanges welcomed this news with joy on Tuesday. If I am not mistaken, Bitcoin rose to 107 at one point, but it has now declined. Yes, this is a justified joy, but on the other hand, crypto is now becoming a part of the system. We should not forget this. Just as Wall Street's influence on Bitcoin has increased a lot since Bitcoin ETFs came out, this time the influence of the US Securities and Exchange Commission is starting to grow very strong.

In this context, I am not sure if cryptos will still be attractive investment vehicles. Because when I look at the crypto world, most of the investor group in particular are not investors, most are speculators. In other words, they want 50% - 70% - 100% movements in a coin. Such movements will become more difficult when the US CMB steps in. Because I think things will go more calmly in an environment where all transactions are under control. In this context, the appeal of crypto is that if you are in a good crypto and it is legally included in the system and that crypto is a crypto that solves an important problem and has a benefit, yes, this law is useful for them. But it is not very useful for those who want to make a quick profit from altcoins.

And the last point is how all this I have explained is connected to the Trump coin. The team that launched the Trump coin or the Melania coin knew that such a new team would definitely be established and that the American Capital Markets rules would be integrated into the system. So, do you think this team, the company founded by the president of America, will it be difficult or easier to adapt to these legal regulations? Will a regulation that will upset the Trump coin be made while these legal regulations are being made? Please think about this question. I am not giving investment advice. I am just trying to share what I have seen. I hope this perspective has been useful.

The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.

How do you rate this article?

36

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.