Continuous Crackdown on Crypto by US SEC is a Bullish Factor for Investors - Report
Investors in the digital currency ecosystem have varying reasons to inject their capital into the emerging industry and the current crackdown from the United States Securities and Exchange Commission (SEC) is one of the main pushes for investors per a recent Bloomberg survey.
The results from the latest MLIV Pulse survey showed that of the 564 respondents surveyed, as many as 60% affirmed that the crackdowns present a positive push for investing in the industry. The SEC has not tapered down its enforcement actions in recent times as it has launched lawsuits against crypto firms, employees, and even celebrities that have contravened the law.
In one of its highest-profile actions, the SEC charged reality TV superstar, Kim Kardashian for non-disclosure of her earnings for the promotion of EthereumMax tokens (EMAX) considered a security by the regulator. When the indictment was brought against her, Kim Kardashian agreed to pay all of the fines worth $1.26 million without admitting or denying any wrongdoing.
According to the survey, around 65% of retail investors say they are more likely to invest in the industry with more enforcement action, a number that compares to 56% for professional investors.
“I'm in the ‘yes’ camp. As a professional investor, you need a regulated investment opportunity and it opens the doors for more professional investors to get involved in crypto, if it's more regulated,” said Chris Gaffney, president of world markets at TIAA Bank. “The more they can get crypto out of the Wild West and into traditional investing, the better off it's going to be.”
The rate of fraud and cybercrime in the industry is growing at a frantic pace and the fact that developers in the crypto industry have a watchdog to make them accountable will help in driving additional due diligence that can guarantee peace of mind for investors across the board.
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Kim Kardashian Charged $1.2M by the SEC For EthereumMax Promotion