The ongoing crackdown by the U.S. SEC on the cryptocurrency market has raised concerns among enthusiasts about the future of various altcoins. Bitcoin OG and educator Dan Held recently shared his insights on which crypto assets are most likely to withstand the SEC’s regulatory efforts.
Proof-of-work coins such as Litecoin, Dogecoin, and Monero that had fair and transparent distributions during their launches are believed to be in a favorable position to avoid the ongoing crackdown. These cryptocurrencies do not match the definition of a security that the SEC is following and therefore face less risk of regulatory pressure.
Last week, the SEC sued Binance and Coinbase for offering several altcoins as unregistered securities. Consequently, major trading platforms delisted many of the tokens mentioned in the lawsuit, causing their prices to plummet.
According to Held, the vast majority of tokens classified as securities by the SEC in its lawsuits against Coinbase and Binance are proof-of-stake coins or ones with premined distribution. This means they have a more centralized ownership, making them more likely targets for regulatory action.
However, Held also pointed out that the current crackdown is primarily led by a single government entity – the SEC – indicating that the level of pressure on the industry is not yet at its peak. He believes only decentralized cryptocurrencies like Bitcoin and a select few others will survive in the long run, as they are the only ones capable of withstanding an all-out government attack.
While the SEC’s continued crackdown can cause uncertainty among crypto proponents, it is important to recognize that regulatory challenges are a part of any disruptive technology’s growth. The ability of various cryptocurrencies to successfully adapt and operate within the confines of regulatory scrutiny will ultimately shape their long-term prospects in the increasingly competitive market.
In conclusion, proof-of-work coins with fair and transparent launches, such as Litecoin, Dogecoin, and Monero, have a higher chance of avoiding excessive regulatory pressure from the SEC when compared to their more centralized counterparts. The present regulatory actions highlight the need for comprehensive reform and clear guidelines to foster the growth of the cryptocurrency ecosystem while ensuring the safety and security of market participants.
Source: Cointelegraph
