The Securities and Exchange Commission (SEC) of the United States announced on Friday that it will be hosting a public forum for blockchain and cryptocurrencies. The event will supposedly take place at SEC Headquarters in Washington DC.
Such an event will be taking place for the second time and will be held on May 31. The forum will be held in collaboration with the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub). The primary motive behind the forum is to promote better communication and understanding among factions of the digital currency space. The SEC tweeted that it will be hosting the forum to discuss distribute ledger technology. Apart from this, the forum will have discussions regarding ICOs, crypto asset and blockchain in general. Impact of these technologies on the investors and the future of the market will also be discussed.
SEC is one of the world’s most powerful regulatory board and has always been stricter in its approach. However, it has stayed reserved in case of digital assets and avoided bringing drastic regulatory changes.
The digital currency market has just started recovering from a disastrous 2018, and January 2019. Several cryptocurrencies lost as much as 90% of their value. The world’s largest cryptocurrency, Bitcoin kept bleeding for six straight months, ending the losing streak only in February this year.
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Cryptocurrencies are responsible for the popularisation of the blockchain. Initially, the technology was limited to digital coins, but as time passed by, researchers discovered the immense potential hidden in the technology. The event will be open for the general public, and will also be live streamed. The details regarding panelists and representatives of the blockchain community will be revealed over the next few weeks.
Prior to the announcement, the SEC informed that it will be going on a “Crypto tour” to gather information and to have a better understanding of the industry before framing substantial regulations, which will definitely be coming in the near future. The reason behind the tour is to interact with investors, influencers and other market participants. This will help the SEC have a better understanding of the market, placing it in a position to frame favorable regulations.
Regulating the crypto space is taking place globally. Countries like Canada, which held back regulations are now being forced to lay down the framework, as frauds, scams, and scandals are creating distrust among the general investors. For instance, the QuadrigaCX Exchange scandal in Canada has sent shockwaves through the market, as 110,000 investors lost a total of $190 million after the young CEO suddenly passed away. Similar scams have been surfacing throughout the globe which has compelled agencies to take notice of these incidents, that usually run down in millions of dollars in value.
Apart from the US and Canada, the two fastest growing economies in the world, China and India are, too, about to frame policies for cryptocurrencies. China has infamously banned several cryptocurrencies and blockchain platforms but is now reportedly working to draft rules and regulations for the industry. India, on the other hand, has been skeptical about the industry, but it too will be framing policies for cryptocurrencies very soon.
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Regulating cryptocurrencies may bring restrictions in the industry which could be quite annoying. But on the flip side, the benefit of regulations are immense. First of all, it will create confidence among investors if they know that the cryptocurrency is now being governed by certain policies. Apart from this, it will prevent the vulnerable investors from being duped or scammed by crypto companies, like in the case of QuadrigaCX. In other words, the regulations will increase the general credibility in digital assets by preventing fraud and promoting user welfare.
