The US Securities and Exchange Commission’s (SEC) ongoing crackdown on crypto companies could actually benefit the industry in the long run, according to a recent editorial by Bloomberg. The editors argue that the crackdown represents an opportunity for crypto to gain mainstream adoption and acceptance, which is crucial for the industry to deliver on its promises to society ultimately.
Regulatory agencies in the US have been busy this year cracking down on crypto companies. For example, the Commodity Futures Trading Commission (CFTC) has sued Binance and its CEO Changpeng Zhao (CZ) for offering unregistered crypto derivative products in the US. Bloomberg’s editorial team agrees with the crypto industry that crypto has the potential to bring many benefits to society.
These benefits include the potential to create better forms of money, more convenient cross-border payments, more efficient finance, and new ways of governing mutual enterprises. The editorial piece asks regulators in the US to follow Europe’s example and implement a regulatory framework like the EU’s Markets in Crypto Assets (MiCA) rules.
How SEC’s crackdown could benefit the industry
The MiCA rules would grant the SEC and the CFTC broad powers to quickly rid the market of thousands of bad actors, without getting bogged down in definitional details and without diminishing their authority in their traditional jurisdictions. The editorial suggests that such a framework would help to eliminate bad actors while still allowing for innovation and growth in the crypto industry.
While some may view the SEC’s crackdown on crypto companies as a negative development, Bloomberg’s editorial team sees it as an opportunity for the industry to mature and gain mainstream acceptance. By establishing a clear regulatory framework, the industry can build trust with consumers and investors, and create a more stable and secure environment for growth and innovation.
The editorial added that while the regulatory environment may be challenging for crypto companies in the short term, the long-term benefits of a clear and stable regulatory framework will be worth the effort. In the end, it is the responsibility of regulators to create a regulatory environment that balances innovation and growth with consumer protection and stability. By working together, the crypto industry and regulators can create a more prosperous and secure future.
