Reported by Jeffrey Wright
The SEC has shown interest in regulating Bitcoin and possibly considering it to be illegal to trade it. There are serious contentious rumblings in the world of cryptocurrency that may have to be decided by a Federal Judge before it is released to the public as a statement. There are several cryptocurrency behemoths that are involved in this potentially declared illegality in the finance market, namely Tesla and Greyscale.
These highly valuable cryptocurrencies include: Bitcoin, Ethereum and XRP. The problem evolves from the idea that the SEC regards XRP as a security controlled by Ripple. But the logic is, XRP is not a security controlled by Ripple, anymore than oil is a security controlled solely by Exxon. We all would agree that such an assertion is irrational and nebulous. With this, we can clearly see that the SEC is working hard and looking for ways to regulate cryptocurrency, by using XRP as an example and precedent.
If this is deliberated by the courts or is considered to be illegal, this would obviously have wide and damaging implications on the booming cryptocurrency industry.
Quite unfortunately, the SEC recently won a case against the messaging app, Kik, which issued cryptocurrency tokens to its customers. For Kik, a judge ruled that the tokens in question were unlicensed securities.
Another example of the perilous existence of Bitcoin and other cryptocurrencies can clearly be found in the following case. For example, the SEC is not the only regulator to draw anger and dismay from cryptocurrency entrepreneurs. Also, The Treasury Department has proposed a rule that would require banks and exchanges to verify the identity of devices and software wallets that can transact in Bitcoin and other cryptocurrencies. However, many critics say that the move could stifle the emerging industry, referred to as decentralized finance.
If this were to happen, it would lead to a crippling of the industry. XRP tanked 91% of its value after the announcement of the SEC finally filing a lawsuit against them, even though there have been rumours that it was going to happen eventually. Thus far, India and Nigeria have banned the usage and trading of cryptocurrencies, it is only a matter of time that more countries follow suit.
Imagine what will happen to Bitcoin and the entire crypto industry if it is declared illegal to trade in many countries?
2. Anonymous Source