SEC Crypto News

The United States Securities and Exchange Commission (SEC) is an important player in the evolving cryptocurrency landscape. As cryptocurrencies become more popular, the involvement of the SEC in the sector is growing, as it aims to protect the average crypto user while ensuring that stakeholders adhere to federal laws. Generally, the regulatory decisions made by the SEC help to understand the view of the US government on the crypto sector.

The Commission considers crypto classification crucial. One major aspect of its role is determining whether or not an asset is a commodity or a security. To decide, the US SEC uses a well-established principle known as The Howey Test. The categorization has strict implications because assets considered securities are subject to harsher regulations regarding marketing and trading. So far, the SEC has taken legal action against several platforms that launched cryptos that are considered securities, without due registration.

The SEC has contributed to the crypto sector by permitting spot cryptocurrency exchange-traded funds, beginning with Bitcoin BTC $62 528 24h volatility: 3.4% Market cap: $1.24 T Vol. 24h: $32.73 B products approved in January 2024. The Commission has also been involved in a regulatory framework for the crypto and blockchain sector, especially regarding the rapid growth of decentralized finance (DeFi) platforms and stablecoins. The agency aims to strike a balance between ridding the sector of fraud and scams and encouraging general innovation.