Global Crypto Market

The SEC Announced New Crypto Regulation Initiatives This Week. Here’s What Investors Should Know – NextAdvisor




Share
Mortgages
Credit Cards
Loans
Insurance
Banking
Financial Goals
Follow Us
Binance.US vs. Crypto.com: Choose Crypto.com for Security, Plus Debit Card Access and NFTs
How to Buy Solana, and What You Should Know Before Investing in This ‘Ethereum Killer’
Coinbase vs. Crypto.com: Why Coinbase Is a Better Choice for Most Crypto Investors, and Especially Beginners
Ethereum and Bitcoin Prices Are Tanking. Here’s Why One Expert Thinks Bitcoin Could Drop Even Lower
Binance.US vs. Coinbase: Crypto Investors Should Go With Coinbase
XRP Is Hard to Buy In the U.S. Here’s What Investors Should Know About Ripple and Its Related Crypto
Bitcoin and Ethereum Prices Slide Amid Economic Uncertainty
How to Evaluate Any Cryptocurrency’s Investment Potential
Ethereum Is Planning a Major Software Update. Here’s What Investors Should Know
Binance.US vs. Gemini: Go With Gemini for Security, Credit Card, and More
Senior Staff Writer
Alex Gailey is a journalist who specializes in personal finance, banking, credit cards, and fintech. Prior to…
Share
A top government official shared new plans this week to bring additional protection to investors in the $2 trillion cryptocurrency market.
Securities and Exchange Commission (SEC) Chairman Gary Gensler announced several initiatives during a speech Monday to expand investor protections in the crypto market. He said the agency plans to register and regulate crypto exchanges, and will explore separating out asset custody to minimize investor risk. Unlike traditional investment banks and platforms, crypto exchanges generally take custody of their customers’ assets, which can increase investors’ vulnerability to  large-scale hacks. Last year, scammers and hackers stole $14 billion in crypto.
Gensler also announced the SEC will partner with the Commodity Futures Trading Commission to address platforms trading crypto-based security tokens and commodity tokens.

“There’s no reason to treat the crypto market differently just because different technology is used,” Gensler said at the Penn Law Capital Markets Association’s annual conference. “These crypto platforms play roles similar to those of traditional regulated exchanges. Thus, investors should be protected in the same way.”

Gensler’s comments come almost a month after President Joe Biden signed an executive order spurring federal agencies to look at potential risks and benefits of cryptocurrencies. Biden’s move encouraged optimism among crypto experts, many of whom interpreted it as a sign the federal government increasingly recognizes the crypto industry as mainstream and legitimate. For investors who have been concerned about the Wild West feel to the crypto market, experts say additional regulation could bring new protections to investors.
Cryptocurrency is still in its relative infancy as an asset class, so any new regulation has the potential to make a big impact on investors’ portfolios. While the exact timing of new crypto regulation is unclear, here’s what crypto investors should make of Gensler’s announcement.
While some investors are wary of cryptocurrency regulation, there are reasons cryptocurrency investors should welcome new regulation and oversight.
Many experts say more regulation could increase market stability and the price and value of crypto. It also has the potential to increase investor protections in the market, prevent fraudulent activity within the crypto ecosystem, and provide clear guidance to allow companies to innovate in the crypto economy. So while crypto investors shouldn’t make any immediate changes based on Gensler’s comments, it’s a good reminder that more regulation is coming. 
In terms of cryptocurrency investing, the fundamentals remain the same. Experts say investors should stick to the big two cryptocurrencies: Bitcoin and Ethereum. They have a longer track record of increasing in value, even while they remain highly volatile with price fluctuations by the day and hour. 

You should also make sure cryptocurrency investments don’t get in the way of other financial priorities such as saving for emergencies, paying off high-interest debt, and saving for retirement. Make sure you don’t invest more than you’d be OK losing — or less than 5% of your total portfolio, experts say.
As for where you buy and trade crypto, it’s wise to choose a mainstream, high-volume cryptocurrency exchange — like Coinbase or Gemini — that proactively complies with evolving federal and state regulators.
Thanks for signing up!
We’ll see you in your inbox soon.
Enter your email
Facebook
Twitter
Instagram
LinkedIn
YouTube
Tell us what you think
Did this article answer your questions?
Time is Up!
Let us know what questions you still have about this topic or any others.
Time is Up!
Thanks for your feedback!
Before you go, sign up for our newsletter to get NextAdvisor in your inbox.
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Cryptocurrency
8 min read
Mortgages
6 min read
Credit Cards
10 min read
Mortgages
9 min read
At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.
Subscribe to our newsletter
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Follow us
© 2022 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use, Privacy Policy (Your California Privacy Rights) and California Do Not Sell My Personal Information. NextAdvisor may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

source


Leave a Comment

Your email address will not be published.