Gary Gensler clarifies plans for crypto regulations, but will the SEC follow up?
Russia has reportedly implemented a new law banning cryptocurrencies in the country. This move could tear off the well-known bandage in the crypto market that has been trying to recover after a big sale this year. However, SEC Gary Gensler’s recent statements may allay recent concerns about unfavorable regulatory pressures and their impact on the crypto market.
JUST IN: President Putin approves law banning cryptocurrencies in Russia
– Blockworks (@Blockworks_) July 15, 2022
The new law is a step back for crypto adoption and highlights another factor that could trigger more sales pressure. This will be especially the case if several countries implement similar anti-encryption measures. The crypto world is particularly concerned about the regulatory path that the SEC is willing to adapt its laws to meet the unique nature of the crypto market.
Gensler promises a considerate approach
In a recent Yahoo Finance interview, the SEC leader confirmed that the United States is willing to accept crypto companies. However, the SEC wants to ensure that they operate within clearly defined laws as part of their efforts to protect the people. The most notable part of the interview, however, is that Gensler confirmed that the SEC plans to exempt the crypto market from some securities regulations.
The SEC leader noted that the exemption aims to encourage crypto companies to pursue regulatory compliance. However, the jury is still out on the SEC’s intentions for the crypto market. Some critics believe that the SEC has been inconsistent in regulating and protecting the interests of the masses.
History will remember @GaryGenslerits regime at the SEC as a “watchdog” in bad faith whose regulatory inconsistency jeopardized public confidence and weakened our financial markets.
– Tom Emmer (@RepTomEmmer) July 15, 2022
Pushes closer to the edge
It is still unclear whether the SEC’s forthcoming crypto-regulations will favor the market despite Gensler’s promising statements. However, the resurgence of regulatory pressure could put crypto markets on edge while investors look on anxiously to see how things will play out.
If the SEC rotates on the plans that Gensler highlighted, the crypto market could plunge into new big sales. On the other hand, a favorable regulatory outcome may encourage more countries to follow suit. This opportunity could lead to positive investor sentiment and potentially trigger a new rally.
Although regulatory pressure currently poses a threat to the crypto market, the right type of regulation can support healthy growth.
