The Securities and Trade Commission’s (SEC) designation of cryptocurrencies as securities will have a significant impact on the market, according to Carol Alexander, professor at the College of Sussex. In response to her, several businesses, including Coinbase, are talking about the possibility of moving.
The outcome of this ongoing SEC litigation will determine which of the 67 crypto assets qualify as securities. She explained in an interview with CNBC that in order to successfully manage this unique asset class, we must create a brand-new class that is distinct from equities, bonds, or commodities—a class that is especially suited to cryptocurrencies.
We can anticipate more comprehensive and relevant laws once this classification is established. Perhaps a worldwide regulating body like the Basel Committee on Banking Supervision (BCBS) could contribute to the creation of important regulations.
She believes that the SEC is attempting to assert its authority over the cryptocurrency landscape through its actions. The outcome of their efforts is still unknown, though.
