In this generation of finance, cryptocurrencies have become one of the most highlighted guarantees of financial investment. These digital currencies have by far regulated the generation of units of currency and verify funds transfer ("Salutary Effects of International Cooperation on SEC Enforcement," 2018). There are so many examples of cryptocurrencies today. According to a study carried out in August 2018, there are over 1600 cryptocurrencies today (Kuskowski, 2018). These currencies, therefore, are bound to have massive impacts in the world economy if they are left unchecked. Therefore, to the question, whether it is wise to regulate cryptocurrencies as securities, I say the world would be so naïve to ignore this booming industry of crypto market.
First of all, let us acknowledge that the crypto market is worth more than half a trillion dollars today. That means the crypto market alone equates to 10% of the five trillion dollars circulating the globe (Kuskowski, 2018). The first mistake that most security regulatory boards are making today is to view the buying and selling of these currencies as illegal since they are not registered under the securities law. However, I do not fully support the idea of the crypto market being regulated under securities law (Rooney, 2018). This is because the growth of this industry is bound to slow even further if at all its operations are stacked in the securities label.
Delegate your assignment to our experts and they will do the rest.
The cryptocurrency market needs freedom of exchange to be able to function effectively ("Framework for Securities Regulation of Cryptocurrencies," n.d.). Traders need to create networks if at all the crypto market is going to grow to higher heights. With more users coming into the market, as a result of networking, the products end up becoming more valuable and therefore the traders can overturn more.
In conclusion, I understand that the point of any form of regulation is to ensure that the market is running smoothly and that the consumers are protected from exploitation and fraud. However, if we do not tread carefully, we might do the consumers in the blockchain technology more harm than good.
References
Framework for Securities Regulation of Cryptocurrencies. (n.d.). Retrieved from https://coincenter.org/entry/framework-for-securities-regulation-of-cryptocurrencies
The Salutary Effects of International Cooperation on SEC Enforcement. (2018, December 3). Retrieved from https://www.sec.gov/news/speech/speech-peikin-120318
Rooney, K. (2018, June 20). Congress members ask SEC chairman for clarity on cryptocurrency regulation. Retrieved from https://www.cnbc.com/2018/09/28/congress-ask-sec-chairman-for-clarity-on-cryptocurrency-regulation.html
Kuskowski, P. (2018, August 1). Why Regulating Cryptocurrencies As Securities Would Stifle Growth. Retrieved from https://www.forbes.com/sites/pawelkuskowski/2018/08/01/why-regulating-cryptocurrencies-as-securities-would-stifle-growth/#663d423b242b
