The SEC continues to crack down on crypto. His latest scan may change your perspective on altcoin projects. Worse still, the situation could result in a notorious legal action that is well known in the industry.
Red alert: 76 altcoins are now illegal!
It’s pretty bad news for the cryptocurrency industry. Unsatisfied with the recent crashes targeting the industry, the SEC strikes again! In fact, according to a May 8 Wall Street Journal article, the agency announced that 76 altcoin projects are unregistered securities. In other words, they are now illegal primarily because they cannot trade under any existing American financial law.
Among the assets in question here are familiar names that regulars consider harmful to their users. This is especially true for TerraUSD or FTT. However, many of the best-known tokens such as Ripple and Dash are also on the list.
Another problem that appears on the horizon is that most of these tokens are traded on exchanges. This is a harbinger of possible future attacks by the SEC. As you follow on Kriptokoin.com, the SEC has already taken action against Kraken and Binance. However, facing the wrath of regulators, other businesses are likely to face the worse. They may even be subject to a ban. Because it’s possible that someone could accuse them of doing illegal business and risking the fortunes of investors.
What will happen to crypto now?
The SEC’s decision will likely have a significant impact on Ripple (XRP). Especially since it applies to legal actions that have been filed against the US regulator for the past three years. With XRP officially outlawed, it’s possible for the SEC to cut legal proceedings short. Thus, it can get the opportunity to declare Ripple absolutely wrong.
However, from a more optimistic point of view, we can note that major tokens such as Bitcoin and Ethereum are out of the question here. Therefore, they can be used freely. But, all the same, it’s only a matter of time before the SEC gets to them. Finally, we can note that the American regulator has finally begun to clarify the rulemaking process regarding cryptocurrencies. It is possible that this will ultimately help businesses comply with applicable laws. Thus, there is a possibility to alleviate the situation. Thus, we may be on the verge of sweeping changes in the industry. With the transition from simply banning certain tokens to shutting down communities. The stake: The fight against the SEC is just getting started!
1294
