Should – And Can – Cryptocurrencies be Regulated?
The SEC has advocated regulating Bitcoin (BTC) and Ethereum (ETH). This raises two interesting questions. Firstly: should they? And secondly, can they?
The SEC has stated that cryptocurrencies are “securities.” Securities are financial instruments representing asset ownership, such as stocks, bonds, and options. Securities typically offer capital appreciation potential. Securities are regulated by securities laws protecting investors and promoting fair and transparent markets.
This begs the question: Are cryptocurrencies in general, and Coins such as Bitcoin (BTC) and Ethereum (ETH) in particular, securities? In 2019, the U.S. Securities and Exchange Commission (SEC) stated that, in its view, Bitcoin and other cryptocurrencies — such as Ethereum (ETH) — operate as decentralized networks without a central authority and are not securities.
However, the SEC has also stated that some initial coin offerings (ICOs) may be considered securities and subject to federal securities laws. Whether a particular cryptocurrency is a security is a fact-specific inquiry and depends on the specifics of the particular cryptocurrency.
Currently, it seems the SEC cannot even agree with itself. But assuming a consensus, is it even possible to regulate Bitcoin (BTC) and Ethereum (ETH)?
Is It Possible To Regulate Bitcoin (BTC) And Ethereum (ETH)?
The short answer is no. Bitcoin (BTC) is designed to be decentralized – nobody owns the entity called “Bitcoin.” There is no fixed address, no central point of operations, and nobody in a c-suite who is signing papers with an orange “₿” on the letterhead.
The longer answer is that several countries and regions have regulated — and outright banned — Bitcoin (BTC) and other cryptos but unable to enforce the regulation. Bitcoin (BTC) exists independently of any individual or organization, and it exists everywhere at the same time.
The same may not be true for other cryptocurrencies. Ethereum (ETH) is also independent and decentralized. At least, that’s what its creator, Vitalik Buterin, says.
Some authorities disagree and state that Ethereum (ETH) is controlled by the Ethereum foundation based in Switzerland. The bad news for the SEC is that they have no jurisdiction in Switzerland, so even if they try to regulate Ethereum (ETH), it may be an ideology more than an executable practicality.
Great News For New Coins such as Snowfall Protocol (SNW).
This is good news for the established legacy coins as well as newer coins.
This week saw the culmination of the phase-two presale for Snowfall Protocl (SNW). The cryptoverse is fond of rewarding early adopters, and savvy investors cottoned onto Snowfall Protocol’s (SNW) use case and snapped up 100 million SNW tokens.
Snowfall Protocol (SNW) bridges the crypto divide by enabling cross-platform trading across all blockchains. This is a headache for many crypto investors who have to go through a tedious process to convert a token from one format to another to do cross-platform trading, resulting in multiple transactions for what should essentially be a single trade.
Simplifying cross-platform trading is the technology the cryptoverse craves. Snowfall Protocol (SNW) has built that technology, and the cryptoverse has taken note. Intelligent investors know when something comes along that changes the way we think.
Easy cross-platform trading to exchange both fungible and non-fungible tokens is a huge step in the maturation of the cryptoverse. Snowfall Protocol (SNW) is here to stay.
Early adopters can buy into phase three of the Snowfall Protocol’s (SNW) presale, with SNW tokens on sale for $0.20. Historically, small-cap coins have made massive profits, and the prudent investor would be wise to add Snowfall Protocol (SNW) to their crypto portfolio.
For more information on Snowfall and its workings, see their whitepaper, or follow them on Twitter and Telegram.
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