In the United States, the Securities and Exchange Commission (SEC) has increasingly made waves with new cryptocurrency regulation news. Some is good news for cryptocurrencies, including the approval of the use of Bitcoin in 401(K)s. These are gaining in popularity as self-directed accounts that are held by approved custodians.
Other types of cryptocurrency regulation news from the SEC are sending a different message. In a recent speech by Gary Gensler, head of the U.S. Securities and Exchange Commission, information on tougher regulations seemed to be the message of the day.
Problems for Investors
In addition to the volatility of the market, which poses a risk for investors, there are other factors that cryptocurrency regulations attempt to address. One is the use of Bitcoin and other cryptocurrencies in ransomware demands for payments. Unlike traditional currency, payment to the hackers in cryptocurrencies means extreme challenges in tracing the payment and finding the culprits.
In addition, there have been losses at cryptocurrency exchanges. These hacking attempts have been sophisticated and carefully orchestrated to take advantage of lapses in security in the network. Not only have the thefts been difficult to detect, but they are also almost impossible to trace.
The goal of the new regulations is to help protect investors, not to limit the use of cryptocurrencies. However, as with all cryptocurrency regulation news, there is speculation that greater oversight and regulations are at the heart of many of the changes anticipated in the future. Some issues, such as clearly defining cryptocurrencies as securities, commodities, or something unique, is seen as a benefit to clarify how the asset will be regulated moving forward.
If you need help in following the latest in cryptocurrency regulation news, turn to the experts at Blockchain Asset Review. To read articles, commentary, and market trends, see us at Sitename.