Will The SEC Implement CFTC's Proposal For Crypto Regulation?

The SEC has been slow to react to the cryptocurrency market and its developers. In early 2019, the SEC announced that it would not pursue any enforcement action on initial coin offerings. This leaves many investors wondering if it is safe to invest in an ICO.

However, in recent months, there has been a flurry of activity around cryptocurrencies and blockchain technology. The CFTC recently published a Digital Asset Advisory (DAA) proposal outlining how cryptocurrency exchanges can offer products and services to retail investors. The SEC also announced that it will consider approving another cryptocurrency exchange-traded fund (ETF) proposal by Van Eck Associates, which is backed by Goldman Sachs and BlackRock.

The SEC has yet to respond to these developments, but it seems likely that the commission will soon be more clear on how it intends to regulate cryptocurrency exchanges and their users. If this happens, there could be a host of new investment opportunities for crypto companies as well as an increase in the number of institutional investors looking to invest in cryptocurrencies through traditional financial markets.