Crypto: Crypto regulation: 2 big questions loom in 2023 after a chaotic year for digital assets

by | Dec 23, 2022 | Stock Market

It’s been a critical year for the crypto industry, which saw the high profile collapses of Terra/Luna and crypto exchange FTX, as well as more than $2 trillion erased from the total crypto market since its all-time high in November 2021. As a result, there’s more pressure on regulators to closely monitor the industry and create robust regulation.  Here are some big questions that still remain before any progress is made:

Is crypto a commodity or a security? Currently there isn’t a comprehensive plan to regulate cryptocurrencies, and one of the big questions that remains is how exactly to classify crypto, said Edward Moya, a senior market analyst at OANDA. According to Securities and Exchange Commission Chair Gary Gensler, crypto is a security. The Howey Test, which comes from a 1946 Supreme Court ruling in the SEC v. W.J. Howey Co., defines securities as money that is invested in a common enterprise with the expectation of profits derived from the efforts of others.   In a statement in September, Gensler said “promoters are marketing and the investing public is buying most of these tokens, touting or anticipating profits based on the efforts of others,” …

Article Attribution | Read More at Article Source

Share This