In our latest article Cryptocurrency News March 2018 we discussed the downward price trend for almost all cryptocurrencies and the statement of the SEC on requiring cryptocurrency trades to be registered.
Almost all cryptocurrencies lost value considerably at the beginning of the month. According to CoinMarketCap, the price of the top 100 cryptocurrencies has dropped except for few coins. Waves and SIRIN LABS Token were the only cryptocurrencies that are not impacted by this downward trend. On March, 6th, Wednesday, the price of the Bitcoin dropped by 6 percent and fell below the $10,000 price level once again. Ethereum, the second cryptocurrency in terms of the highest market cap, is dropped 8 percent to $741.59. Also, Ripple was down by 7 percent to $0.85.
One of the reasons for this trend might be the SEC’s (U.S. Securities and Exchange Commission) statement that they will require cryptocurrency trades to register. This statement created an instability on the cryptocurrency market. In fact, countries and financial organizations might empower some regulations on the trade. The main issue about the SEC’s statement is the uncertainty. It is known that they have been attempting to crack down on initial coin offerings (ICOs) for some time, saying that they may technically be unregistered securities. The question is whether the SEC considers major cryptocurrencies like Bitcoin and Ethereum to be securities or not. Experts have different opinions on regulating the cryptocurrencies and transactions. Nevertheless, the uncertainties in the definitions create a volatility and speculation in the market. Here’s the part of the SEC’s statement:
If a platform offers trading of digital assets that are securities and operates as an “exchange,” as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.