While the cryptocurrency prices showed significant revival since the beginning of 2023, the US regulatory scrutiny led by the U.S. Securities and Exchange Commission (SEC) has been equally intensive. Even the largest crypto market players like Coinbase, Binance, and Kraken have faced challenges in recent months. The SEC’s enforcement appears to be contradicting the market’s demand for regulatory clarity, and the commission has stated that it could take years to complete crypto rulemaking. In the meantime, it will continue to take the enforcement route.
Critics have voiced concerns against SEC Chair Gary Gensler for his “come, register and comply” policy, and tension has grown after Gensler failed to answer whether existing laws are sufficient to govern the crypto asset market. This situation makes us question if a change in the crypto market could be on the horizon.
Recent events such as the heightened enforcement actions against crypto businesses, combined with the US regional banking crisis, have led to Bitcoin’s price experiencing sideways movement while losing some value in the past few weeks. At the same time, the crypto market sentiment has been dominated by memecoin-related events, with currencies such as PEPE Coin grabbing investor attention since its launch in April 2023.
Crypto influencer Ran Neuner believes that the ongoing regulatory scrutiny could ease off as we approach the US election year, predicting that the SEC may initiate fewer enforcement actions starting around Memorial Day, May 29, 2023. Neuner’s perspective suggests that changes in the political landscape might influence the crypto market and its regulation.
Neuner also added that Gary Gensler could be replaced in the SEC’s top post if Republicans win the upcoming US elections. This potential change in leadership raises questions about the future direction and focus of the SEC and how it could affect the rapidly evolving crypto industry.
With the current imbalance between the cryptocurrency market’s growth and the regulatory framework governing it, both proponents and critics of the technology are left wondering how future developments will unfold. As we approach the US elections, the direction the crypto market and regulations take will likely be influenced by the outcome. Ultimately, the crypto community seeks clarity and stability in managing the technology’s potential and mitigating its risks.
Source: Coingape
