The United States Securities and Exchange Commission (SEC) has issued a warning regarding investing in crypto. The agency cites volatility and a lack of crypto asset investor protections.
The United States Securities and Exchange Commission (SEC) issued a notice on March 23 cautioning investors about crypto asset securities. The SEC’s Office of Investor Education and Advocacy stated that crypto investments “can be exceptionally volatile and speculative, and the platforms on which investors buy, sell, borrow or lend these securities require significant protections for investors.” There could be a shortage.”
The latter point was the gist of the notice, which echoes sentiments that agency officials have made in the past. Some in the crypto community have also stated that SEC Chairman Gary Gensler and others have launched a hostile mission against crypto exchanges and companies.
The SEC and its officials oppose such comments, saying that it is only an attempt to protect investors. While many crypto companies have acknowledged that the crypto market needs more regulations, it disagrees with the SEC’s regulation-by-enforcement approach.
Coinbase was the most recent crypto company to add to the discussion after it revealed that the SEC sent it a Wells notice. The popular exchange is trying to work out the rules with the SEC.
Lack of clarity on regulation by SEC is a major hurdle
In the notice, the SEC said that no crypto exchange has regulated itself in the market. Registrants include broker-dealers, investment advisors, alternative trading systems (ATS) and of course exchanges. The SEC also looks into the lending and deposit of crypto assets.
However, crypto companies have urged the SEC to provide more clarity on regulation so that they can better operate within the law. This has been a major pain point for the industry, which is doing everything it can to win over agencies.
El Salvador Removes Tech Tax As Others Look To Tax Crypto
Meanwhile, some other countries are going to regulate the crypto market. Some are even going as far as eliminating the tax, as in the case of El Salvador. The latter is arguably the country that has been most vocal about cryptocurrencies, having made bitcoin legal tender.
This is in sharp contrast to countries like the United States and India. The former is currently readying a 30% tax on crypto mining usage, while India heavily taxes crypto trading.
As it stands, most countries are working on CBDCs, or at least researching them. Private cryptocurrencies are something that most governments seem to be opposed to.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.