Is the golden era for crypto trading over?

in crypto-news •  3 years ago 

Recent announcements from the SEC could trigger a dramatic shift in the culture of crypto-trading. What was once inclusive and non-geological will now involve lawyers, new risks, and nationalism is slowly being brought into crypto via regulators. Asking traders, what do you think the result will be if:

  • Only regulated exchanges exist (BTC-E and all similar exchanges shut down).
  • All regulated exchanges treat crypto tokens as securities due to legal reasons.
  • Only accredited investors are allowed to trade crypto tokens.
  • The IRS insists on the most draconian tax interpretation possible.

If all the above happens what will the crypto trading landscape look like? Is it the end of the golden era?

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Trade peer to peer the way Bitcoin was intended. Exchanges are just a byproduct of the legacy monetary system and will probably go the way of the dinosaur.

Even if Bitshares is a decentralized exchange, it has a bottleneck in that the SEC can target the delegates aka witnesses.

It's a natural response of those that thrive on centralization to fight the decentralization of money and assets. I won't even be surprised to hear about cryptocurrencies and how they are damaging society next year when election season starts ramping up. The question is whether the crypto community will be organized enough to fund education campaigns when this happens. The average person will believe whatever they hear on TV or radio, so if all they hear is how bitcoins are used to buy drugs and weapons, then they will support measures that crack down on the crypto world. It's about to get interesting!

I personally see this as the one huge remaining question mark over the market cap of cryptos. One big move by the feds here in the US could force many people to make moves they wouldn't have otherwise.

Great points!

They don't seem to mind decentralization. What they seem to be doing is putting up barriers to entry and letting the whole thing remain decentralized. Basically if you're not an accredited investor or a chosen person you cannot have the opportunity to trade crypto if certain people change the community in certain ways.

The biggest issue is that this tech reduced the barriers to entry. Anyone could trade crypto from anywhere. We are about to lose that.

I don't think so. It is just the beginning.

Crypto can't be stopped :D

It can't be stopped, but they definitely can make it harder to get your fiat currencies in and out. That's where they will apply the pressure.

Maybe with wider acceptance, we won't want to trade it for $$$$. That would solve that problem;)

That may be the end game for fiat...LOL

You would be correct, but in the reality we live in today, that's not going to happen for years, if not, decades. As of right now, the only way to pay bills here in California is with USD, so this doesn't necessarily solve the problem for the next few years.

Might happen a lot faster were the dollar to crash. Many believe that'll happen sooner than later.

There are no problems...only solutions. And we will always find solutions :D

That is why the goal one day is to get rid of fiat using. :)

@jwolf you are right, Crypto can't be stopped

New lawyers, regulators, and policy makers means job creation!!!

Doesn't the SEC's jurisdiction only cover US citizens?

I think that many should follow @sean-king and simply leave the country.

The other question is ... What percent of the crypto-investors are American citizens? Would it have any impact on the cryptoverse if American citizens weren't allowed to play?

You may have to renounce citizenship too and is it worth it?

I guess it depends how much you have invested. It's definitely a major decision.

I think this is what I would do if this happens. I'd legally emigrate to somewhere like Puerto Rico.

This might be just the kick I'd need to quit my day job and "go for it", as it were.

Yes, the landscape is changing. But not as in the end of an era. We're just at the beginning.

NOBODY CARES about the USA! 350 million people vs 6 billion worldwide..

i guess not even the moon is the limit :D

Just the beginning

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  ·  3 years ago (edited)

don't worry about that , this a new field it will adapt , just get max the coin possible and hold them:)

Markets , trading , and even life , has its ups and downs , it doesn't mean it's going to end just because someone says it , there needs to be a reaction in order for this to occur . Crypto is increasing everyday as more and more people become aware of it , this golden age has just been discovered it seems and it has a long way to go as long as we keep minnning for the gold @dana-Edwards

Until some pro crypto politician steps forward to ease regulations for the average investor then the barriers (legal and regulatory) could shut the average investor out in favor of "accredited" rich investors. Crypto did not start out as a toy for the rich but it will probably end up that way.

Fingers crossed 🤞🏼

edward i live in nyc and trust me this is only starting. people will throw more to this space.

When the Rothchilds bought in a few weeks ago didnt we expect the old manipulatipn games to appear ? I did anyway .

What? What did I miss?

Apparently some Rothschild money moved in. Saw the headlines, but didn't vet the source.

What do they have to do with any of it? Other than being a high status last name, is there any evidence which you can directly link to any of this?

I realize people like to make Rothschild the scapegoat for practically any conspiracy but I don't see any evidence. The SEC legislation on the books was put in place under Democrats who helped create the rules and Republicans who usually like to reduce regulation don't seem to mind keeping the barriers to entry up to "protect unaccredited investors". And no politician has offered to allow US citizens to waive SEC protection.

There's very little doubt that the moment cryptos-- as an overall concept-- start to represent a material threat the the status quo... the governments and regulators will start poking their noses into things.

Nothing will be "illegal" or outlawed... it'll just be made cumbersome and impractical... far more difficult to use than fiats and conventional securities.

Maybe it will be a bit like pot in certain places... you're totally allowed to OWN it, and even personally CONSUME it... but the instant you try to trade it you'll be hit with a wall of legislation and requirements and fees.

Exactly, with the taxes being risky, and now the SEC creating new risks in securities regulations, it seems that the community is going to be reduced only to people who can afford to hire a legal team to navigate the regulatory risks. That will basically raise a huge barrier to entry which didn't exist. Reduces the opportunity for the average person of course but maybe they don't care about the average person having the opportunity to make money as much as they care about the average person having the opportunity to lose money.