The US senator, Elizabeth Warren, is not particularly a big fan of crypto. She has always been sceptical about cryptocurrencies and the risks involved with them. This is why Warren has now given the SEC chairman Gary Gensler till July end to figure out the way to regulate crypto. This means by the end of this month, crypto will be properly regulated in the US. It sounds to be a good thing! What do you think?
The concerns of the US Chairman
The US Senator, Elizabeth Warren, has been worried about a lot of aspects of Bitcoin. One of the biggest ones among them is the speculative nature of the currency. Even though I would disagree but the volatility makes it seems like pure speculation. This has led to huge losses for many investors as they didn’t know about the investment they were making. At the same time, Elizabeth is also not a fan of the energy usage of Bitcoin. Even though the data shows that 56% of it is renewable energy, and most of the energy used will be wasted if not for Bitcoin. These concerns are why the US chairman wants the SEC to regulate crypto fast.
The need for regulations
Being a completely decentralized market, Bitcoin is often manipulated by whales. They create FUDs that shake out new investors at a loss while they accumulate at a lower price. This is why regulations are necessary. By making proper regulatory laws and overseeing the market, the SEC will be able to protect retail investors and anyone new to the market.
Another benefit of having regulations is the tax benefit. At present, there are no proper tax regimes for crypto gains, and this makes it difficult for investors to file them. In fact, the ones who pay often end up paying a lot more. This is why proper regulations will help not only the investors but also the government in bringing in more taxes.
And finally, having regulations and the governments backing means investors will have more belief in the newfound asset. At the same time, the pace at which new investors are joining the Bitcoin network will also increase. All this will be really beneficial for crypto in the long term. In the next few months, we might still be in the bear market, but these laws will be for good.
What are your thoughts on the SEC given July end to regulate crypto? And do you think we will see something positive? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.