Implications on cryptocurrencies being deemed a security

For the last few months SEC has created quite a stir by hinting on regulating the cryptocurrency market. They want to have their say on whether some cryptocurrencies are securities. That would bring them directly under their purview and impose a lot of restrictions and regulations applicable to securities trading in the US. CFTC and SEC have been at loggerheads and each has been trying to prove that they are the top dog as far as investment regulations are concerned.

Now what are the implications of some cryptocurrencies being deemed securities, you might ask. Well, there are certain short term as well as long-term implications. First, lets look at the short term ones. Since most crypto exchanges don't have the license to list securities, except Bittrex, that will mean those exchanges may have to delist those cryptocurrencies. That will have a major effect on the short term sentiment for the cryptocurrency market. The long term implications, though are much brighter. Institutional money will be ready to come in as the security market is regulated. That will result in huge money pouring in for legit cryptocurrencies which have a definite use-case. That will also mean, all shit-coins without a proper use case will die. That, may actually be a blessing in disguise!