It Has Begun
If you look at how modestly the SEC began its “Crypto clamp down”, it’s becoming rather obvious that the heat is being turned up another notch. For quite some time, nothing much happened after EOS was initially fined by the SEC. However, the list of “targets” has increased quite dramatically over recent months. It is rather uncanny how these “events” always seem to occur at the most “perfect” of times.
In a similar way, the China mining ban took place at an extremely crucial moment in Bitcoin’s journey. Personally, I am glad it is being “taken care” of now. The more ammunition that is utilized now, the less damage can be done in the future. Ideally, you really want all of these issues put to bed, prior to a truly significant move, accompanied by adoption.
There are those who will consider that BTC simply shrugged off the recent Kraken and stablecoin news. However, do a little investigation, and the recent pump appears to be a little artificial, to say the least. This is not to detract from Bitcoin’s resilience and ability to overcome challenges, but rather to draw attention to what is possibly being overlooked.
We all want Crypto to overcome hurdles, challenges, and even assaults. However, an artificially created move won’t provide much support when challenged. As I have said before, certain dynamics provide validation when it comes to price action. One just has to be careful that a strong desire to escape the bear market doesn’t lull market participants into a hypnotized state of carelessness.
The Initial Stage
The SEC might be somewhat out of their depth when it comes to understanding, categorizing, and regulating Crypto assets. However, I guarantee you that they are a lot more skilled in the art of warfare. Don’t celebrate too quickly! This is just the first wave of a carefully planned battle strategy. This is far from over.
The attack will become more intensified over time and is currently aimed at slowly breaking down the defense. Regulation is in essence the desire for dominion and control, plain and simple. When Crypto’s market cap was insignificant, not a single regulatory body was concerned with the “safety of investors”.
I firmly believe that the SEC is just as much responsible for the FTX debacle as SBF. It is their responsibility to ensure the safety of investors, correct? It’s a packaged deal, with much power comes much responsibility. However, there is zero accountability and responsibility.
These entities are meant to serve and protect the people. They are not a law unto themselves, and yet their behavior often leaves you with that very impression. There also appears to be a complete lack of clarity and distinction coming from the SEC, which actually serves as a destabilizing mechanism.
Those wishing to be compliant have no framework to align to. There is no clarity in terms of “process” and structure. In other words, being scolded for not obeying laws that have not actually been released. I would like to draw your attention to a recent article I read highlighting the ignorance of the SEC. This is not uncommon, and I have found it to be prevalent amongst many regulatory bodies. They simply have no idea.
Whether or not regulators understand what they are attempting to regulate, they are still coming for Crypto. This is going to be a war that will see many battles. It is important to remember that a single victory does not indicate ultimate victory. I believe that this is likely to carry on for some time. Remain optimistic, but cautiously vigilant. Until next time!