- It is possible that such pressure from the authorities has a positive effect
- Counterparties with weak or unreliable structures will leave the market, making room for others
The Fed is expected to raise interest rates again today, May 3, after which the market will go down.
SEC (Securities and Exchange Commission) continues to press CEX despite the hypocrisy of its chairman.
Some platforms have already expressed their willingness to leave the U.S. market, and that seems to be where it’s going.
The collapse of FTX showed how vulnerable the trader in this sector really is..
The speculative nature of investments, the complete uncertainty of the legal field, the high level of fraud and the impunity of large counterparties make the sector unattractive to most users.
A clear and transparent regulatory framework is designed to change this. Protect the investor. In the example of the U.S. and the EU, we see two different approaches to this issue.
While in the second case the new rules are introduced in stages, in the second case the regulators stick to the “here and now” principle.
SEC, CFTC (Commodity Futures Commission) and FDIC (Federal Deposit Insurance Corporation) are trying to “bring the industry to an agreement”.. Tough and as fast as possible.
And it really threatens to drive some companies out of the market. But is it that bad? Bloomberg analysts think not. As an example, the portal cites the broadband market boom of the 2000s.
Then investors suffered tangible losses, but the concept itself “survived.”. Moreover, it gave rise to the fiber-optic infrastructure that is used everywhere today.
Cryptocurrency can bring many things to the financial system. Reduce transaction costs, for example.
Recall, Coinbase claims that the use of cryptocurrency will eliminate almost all intermediaries in the payment system.
And those companies that agree to the new rules of the “game” will get a much larger “piece” of the market. It’s even possible that later on it will benefit the industry by closing the regulatory issue forever.
That’s another way of looking at what’s going on in the U.S. right now. Tough regulations aren’t always a bad thing.
Perhaps the pressure from authorities in this market is a one-time crisis necessary to make the segment healthier.