Cryptocurrency has been quite a crazy industry for the past year or so, with many individuals choosing to get involved due to the high amount of publicity the industry has accrued. The industry saw the largest coin by market capitalization, bitcoin, shoot up to a price of $20,000 from just under $1,000 during January of last year. This was a large milestone for the entirety of the industry as it was the first time a price had been legitimized in crypto by such a high number.
Since that incremental time, the industry on cryptocurrency has become flooded with the use of initial coin offerings as a way to raise capital. With this came a large amount of individuals only looking to get rich, thus bringing sketchy activity into the market. With many investors coming into the space to try and get in on this budding industry, the SEC has come out with a warning for all those looking to get involved. The Security and Exchange Commission shot down several proposals from companies offering new ways to trade cryptocurrency on more traditional exchanges, and for what reason, many are still unsure.
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This is not the first time that the SEC has gone up against cryptocurrencies and it doesn’t look like it will be the last. The SEC chairman, Jay Clayton stated that cryptocurrency markets “feature substantially less investor protection than traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.” As this industry is able to grow in the coming months, the hopes are high that the SEC will be able to work with those who are willing to invest instead of actively fighting against them. The next few months will help to determine what happens in this new and quickly emerging cryptocurrency world.