Regulatory bodies in the US are allegedly coordinating an attack on the cryptocurrency industry, with the Securities and Exchange Commission (SEC) being among the participants, according to an unnamed source cited in a Decrypt report. Although the SEC has not specified which cryptocurrencies it may target, there are rumours that it could introduce a ban on staking specifically for retail investors, prompting concerns of over-regulation. However, the report suggests the SEC’s actions are aimed specifically at centralised crypto players, such as Coinbase and Kraken, which offer ethereum services.
The SEC’s Role in a Coordinated Attack Against Crypto
The regulatory landscape surrounding cryptocurrencies has always been murky, and it’s getting even more confusing with the recent move by the US Securities and Exchange Commission (SEC). In a recent YouTube video, a conspiracy theory is discussed, which suggests that the SEC’s recent actions are part of a coordinated attack on cryptocurrency by various regulatory bodies.
According to the video, the SEC’s recent decision to introduce a ban specifically for retail investors is just the beginning of a massive attack that is underway in crypto. This is not just a single altercation, but rather a coordinated effort by various regulatory bodies to clamp down on cryptocurrency exchanges and ICOs. The conspiracy theory in question is that FTX was the starting point for this attack, a move that has given regulators an excuse to completely over-regulate the crypto industry.
However, despite these theories, it’s important to stick to the facts. There is indeed a rumor circulating that it’s specifically the SEC that is coming out with this ban for retail investors. The reasoning behind this is that staking has been classified as a security, and the SEC is simply enforcing regulations around this. This means that anyone who wants to stake needs to contact the SEC before they can proceed. Unfortunately, this move has caused a few issues, as the SEC seems to be particularly slow in responding to requests for permission.
As an example, Brian Armstrong from Coinbase has already experienced this first-hand. When he tried to set up a meeting with the SEC to discuss the issue, he was told that they would not meet with him. This is just the start of the enforcement process for the SEC, which could well see them starting to fine companies and exchanges that do not comply with their regulations.
It’s also essential to note that this is not an attack on Ethereum (ETH) alone. Instead, it’s more about regulating centralized players in the cryptocurrency space, such as Coinbase and Kraken, who are offering ETH services. It remains to be seen how this coordinated attack against cryptocurrency will play out, but it’s clear that crypto users and companies alike will need to take a more cautious approach now more than ever.