The American investment watchdog SEC has gone into a regulatory overdrive after the fall of FTX. FTX was considered to be the pillar of the Crypto community. Its collapse within a matter of weeks has once again led to a crisis of confidence in the investor community.
The SEC has been registering case after case against Crypto ETFs as the collapse shed light on some of the common malpractices.
Crypto insiders are worried that the SEC will now move to regulate this famously decentralized market. However, speculators are claiming that the SEC will not ‘stand idly by’ as investors lose their life savings in badly executed Ponzi schemes.
Although 2022 was a tumultuous year for the Crypto markets, ETFs giving investors exposure to the futures in these markets have thrived. Bitcoin also bounced back as the bull run took the value of the flagship cryptocurrency to $30K.
Speculation over SEC regulations continues to be rife in the already volatile crypto market. There are some who argue that regulation might help companies regain some of the lost investor confidence over the last year. The future of digital assets and digital asset finance companies remains unclear as ever. How regulators across the world will regulate this decentralized marketplace remains to be seen.
