The Security and Exchange Commission (SEC) has launched a major offensive to regulate the cryptocurrency industry.
In the language of the cryptocurrency industry players, the new offensive of U.S. regulators can be summed up in one word: crackdown.
The U.S. Securities and Exchange Commission seems determined to impose order with an iron fist on the sector, after years of a laissez-faire approach which has led to fiascos and resounding financial scandals, such as the overnight bankruptcy of the empire of the king of crypto Sam Bankman-Fried. His empire consisted of the FTC cryptocurrency exchange and its sister company Alameda Research, a trading platform.
Before FTX filed for bankruptcy last November, sister tokens Luna and UST collapsed in May 2022, triggering a credit crunch that put crypto lenders Celsius Network and Voyager Digital out of business. Billions of dollars have been wiped out in these scandals, leaving a bitter taste for millions of investors, including retail investors.
When these scandals broke, the question that came up the most was where the regulators were to protect clients or investors.
Source: https://www.msn.com/en-us/money/other/the-government-is-coming-for-crypto-and-your-coins/ar-AA17OUPG