Summary
The SEC is still going for cryptocurrencies, and its most recent dragnet might alter how you view your tokens.
Even worse, the scenario can result in a notorious court case that is well-recognized in the industry.
The bad news is that your beloved tokens might no longer be legal to own, at least in the view of a particular well-known regulator.
Cryptocurrencies: Will the SEC Soon Ban Them?
Sadly, the SEC has launched another dragnet after being dissatisfied with its previous ones that targeted the cryptocurrency business.
In fact, the agency has declared that 76 cryptocurrencies are unregistered brands, according to a Wall Street Journal article from May 8. In other words, they can no longer trade under any financial law in effect in the United States, making them illegal.
The assets in question include well-known brands that regulars consider to be harmful to their users. This is especially true when it comes to TerraUSD or FTT. Ripple and Dash, two of the most well-known tokens, have been included on the list.
Another issue that could arise is the fact that many of these tokens are listed on exchanges. This indicates potential SEC assaults in the future. Even while the government has already taken action against Kraken and Binance is subject to authorities’ fury, other businesses may have to deal with even worse.
They might even come under a ban. Since they might be charged with engaging in illicit business practices and harming the fortunes of investors.
What will happen to cryptocurrency?
The SEC’s ruling might have a big effect on Ripple. In particular, it relates to the legal cases that have been fought over for the past three years between it and the US regulator. Since XRP is now officially illegal, the SEC might end the legal process and definitively hold Ripple responsible.
From a more upbeat perspective, we may point out that the major tokens like Bitcoin and Ethereum are unaffected by this. Thus, it is conceivable that they might be freely used. However, it is also true that the SEC will eventually get to them.
Finally, it’s important to note that the American regulator has finally clarified the rules it has created for cryptocurrencies. This might eventually assist companies in complying with the relevant legislation, which could eliminate the problem.
Consequently, the industry may be about to undergo major changes. With the transition from the straightforward banning of certain tokens to the shutdown of societies.
The lesson to be learned from this experience is that the fight against the SEC has just begun.