Crypto Lawyers Sound Alarm on Regulatory Uncertainty
The crypto industry has grown significantly in recent years, with an increasing number of investors turning to digital currencies as a way of investment. Its expansion, however, has been challenging, as a lack of explicit regulatory norms has made it difficult for investors to navigate the market responsibly.
As a result, many investors are left vulnerable to fraud and other malicious activities.
Mike Selig’s perspective on demystifying the crypto market
Mike Selig, a crypto and web3 lawyer at Willkie Farr, stated in a recent interview with cryptocurrency journalist Laura Shin that it is tough for investors to navigate the crypto market without set standards.
As Mike Selig sees it, the question is whether the SEC is looking at some other facet under the definition of security that would allow for the sale of some of these stablecoins. Moreover, Mike Selig stated that many investors rely on recommendations such as Howey’s analysis and the fin hub framework as they are the industry’s sole legitimate guidance on what is and is not a security.
The crypto lawyer went on to say that the sector is in a dilemma, considering there aren’t enough guidelines for investors to follow when offering assets and declaring that they aren’t investment contracts.
Selig’s warning follows the SEC’s action against Paxos and BUSD, which, in his view, exemplifies the old cliché that the crypto space is difficult to navigate due to the lack of regulations.
As reported by Tokenhell, Paxos Trust Co. had earlier been sanctioned by the New York Department of Financial Services to stop minting the issuance of Binance stablecoin, BUSD. Further, the Securities and Exchange Commission sent a Wells notice to Paxos indicating a potential regulatory action.
The investigation’s precise extent, which was sparked by worries about Paxos’ liquidity and the security of customer funds, was still unknown.
Despite regulatory woes, Binance stands behind BUSD
On a related topic, CZ has emphasized that Binance is still committed to backing BUSD despite the SEC and NYDFS worries. He has also underlined how seriously the exchange handles the security of user funds and how users need not fear.
In conclusion, as the crypto market continues to evolve, it is becoming increasingly clear that regulatory uncertainty is a significant obstacle to its growth. Without clear rules and standards, investors will continue to face challenges in navigating the market safely.
Selig’s warning is a timely reminder that caution is needed in this emerging market and that investors must be proactive in seeking reliable legal advice to help them navigate the murky waters of regulatory uncertainty.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
