The cryptocurrency market is collapsing because, according to the SEC, practically all cryptocurrencies other than Bitcoin and Ethereum are securities.
If confirmed, these crypto currencies must report the data listed below in picture form to the US government every quarter.
If the SEC prevails, two scenarios will emerge:
1) Crypto firms must register with the SEC and supply all necessary information in order to operate as a registered company in a highly regulated environment. Existing project models such as Polygon, Solana, and others will find it extremely tough.
2) If crypto firms leave the US, US people will no longer be able to trade in those assets. No US exchange will enable those assets to be listed on a US cryptocurrency exchange.
Crypto enterprises will lose a market like the United States, and they will suffer a liquidity issue in terms of trading and VC funding.
Scenario 2 is the most likely, and we are currently seeing:
- Market makers are quitting the market.
- Crypto is being delisted by US exchanges.
- Venture capital is not backing new or current ventures.
