23Views
Is the SEC coming for your crypto neck? A warning for creators
The SEC might be coming for your crypto wallet…
The crypto industry may want to prepare itself for more active intervention coming from the Security and Exchange Commission. In recent years the SEC came after DJ Khaled, Floyd Mayweather, and Steven Segal, but lower-profile individuals involved with crypto trading may want to be more cautious.
Gary Gensler and the SEC have been fighting the war on crypto for some time now, most notably the lawsuit last year with Ripple Inc which debated whether crypto was currency or security.
Most recently the SEC has even threatened lawsuits against one of the most popular crypto trading companies, Coinbase, which ended their “Lend” program.
Why should this matter to everyday crypto traders?
Cryptocurrency has a promising future in the economy, allowing everyday people to take more control over their finances.
Since China’s crypto ban, the price for Bitcoin, Etheruem, and a few other currencies are making it easier for anyone to become wealthy, but also for anyone to be scammed.
Labor shortage and The Great Resignation
Recent studies by Civic Science shows how economic freedom from cryptocurrency led to more people leaving their job, contributing to the “Great Resignation.”
This data shows how those with the lowest income, quit their full-time job to invest in crypto are the ones quitting their jobs.
With more people quitting their jobs and turning to crypto, it won’t be a surprise why the SEC may crackdown on traders to better incentivize them into returning to work.
Flaunting your crypto wealth can get you in trouble with the SEC
Both DJ Khaled and Floyd Mayweather have been charged by the SEC for promoting cryptocurrencies sold in their initial coin offering (ICO) without revealing that they’ve been paid.
What sets crypto trading apart from stocks is that they work in the gray area between securities and currency. It’s easier for crypto traders to make lots and disclose anything to anyone. It’s important for lower-profile crypto traders to remember that with great gains comes great responsibility.