SEC crackdowns are making crypto more attractive to investors, according to survey
17:59, 24 October 2022
A recent poll suggesting that the Securities and Exchange Commission's (SEC) crackdowns on cryptocurrencies could make the sector more attractive to investors, will undoubtedly come as a surprise to many industry players.
The survey by Bloomberg's MLIV Pulse shows that the majority of polled investors - some 60% of the 564 respondents - believe the SEC’s recent action against cryptocurrencies is “a positive sign for the asset class”.
The cryptocurrency industry has its reservations about the way the US financial regulator has been overseeing the emerging sector, however, players such as Coinbase (COIN) and Ripple (XRP) are calling for more formal directions from the watchdog.
Ripple (XRP) to US Dollar
In July, one of the world’s biggest cryptocurrency exchange platforms Coinbase (COIN) started a petition calling on the watchdog for clearer rules.
“Our petition calls on the SEC to develop a workable regulatory framework for digital asset securities guided by formal procedures and a public notice-and-comment process, rather than through arbitrary enforcement or guidance developed behind closed doors,” the petition, signed by Coinbase's chief policy officer, Faryar Shirzad, read.
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Coinbase (COIN) share price chart
High profile cases
The SEC is currently embroiled in a host of court cases with crypto firms, with the most prominent one being its almost two-year-long case with RippleLabs centered around the question whether XRP is a security and therefore falls under SEC's remit.
Another recent example of the SEC’s ruling on a cryptocurrency coming into the spotlight was when the US reality TV star and billionaire, Kim Kardashian, got a $1.29m fine for promoting a token EthereumMax on her Instagram.
The penalty had some unintended consequences as the EthereumMax token actually surged further after the SEC news brought more attention to it.
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