SEC Crackdown on Crypto ICO's and What it means

It has been in the news for a while but recently a source from the SEC has confirmed that many ICO's (initial coin offerings) and existing coins are under investigation.

They are looking for illegal activity and coins that have defrauded their investors. They will continue to investigate new and emerging coins in a effort to eliminate fraudulent coins.

Although many fear regulation, at the end of the day this is something that the crypto market needs. We are still in the early days of crypto and this unregulation keeps away many types of investors. These investors include most institutional banks trading firms.

Without regulation, the massive buying power that Wall Street has is useless. Although in the world of crypto, many people might not like Wall Street. We can't ignore the fact that many of these firms manage more money than the whole market cap of cryptocurrency combined. Bringing in regulation will unlock these funds and allow massive amounts of money into the market, which will ultimately help with liquidity and stabilize the market.

Having a stable and regulated market will remove fear that most of the people who are new have. Getting in while there is still uncertainly is a great way to set your self up for big future profits. Once it becomes "easy" and "normal" to invest into crypto, the volatility will soften up and the massive profits will be few in-between.

Although full regulation will take awhile, the fact that they are starting here is a positive thing and is good for the market moving forward.

Note: These are opinions and not be to taken as financial advice. It is recommend to contact your financial advisor before making any investments.