The role of the SEC in driving blockchain and crypto “innovation” in the US

The SEC is now considered by some as “thorn in the eye” of many Bitcoin enthusiasts. Back in March, 2019 Leaprate reported on the situation inside the SEC regarding crypto regulation.

As the crypto world keeps evolving and other markets become more aggressive in their desire to be market leaders, will the intransigence of the SEC drive billions from the U.S. economy into unknown foreign locales.

The fear of losing billions of dollars from the US economy is real. However, the other “scary” thing is that as the SEC is still hesitant on how exactly the crypto industry is to be regulated, a huge chunk of innovation may divert from the US to Asia.

As reported by AMB Crypto news outlet, the Circle-acquired exchange, Poloniex, one of the major crypto exchanges in the world, announced that it “geofenced” nine of its assets just recently. The reason cited for that is the vague regulatory environment in the United States. Basically, Poloniex fears the next SEC’s move in terms of crypto regulation.

Another major point is that the US has some of the safest and largest crypto exchanges in the world, such as Coinbase. While other exchanges may “fake” their volumes and experience major hacks, exchanges in the US have not had such problems to such extent as their foreign counterparts.

However, investors are looking for stable regulatory environment. Founders of blockchain-based companies and cryptocurrencies want the same stable market environment. The SEC, with its hesitance regarding crypto regulation, may be driving away much-needed innovation and capital.

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